Reduce import duty on coffee, Papua New Guinea to urge India

Papua New Guinea (PNG) will lobby the Indian government to reduce the country’s 110 percent import duty on coffee, the country’s High Commissioner to India, Paulias Korni, said on Sunday.

Papua New Guinea, an island nation in the southwestern Pacific Ocean, is well-known for producing some of the world’s highest-quality coffee.

“We will approach the Indian government to request a reduction in the import duty on PNG coffee and sincerely hope that the two countries’ double taxation (avoidance) agreement is completed soon,” the high commissioner said.

The two countries are currently negotiating a treaty to avoid double taxation.

Sujoy Maitra, an NRI businessman who claims India is missing out on the flavour of PNG coffee, claims he wants to open 300 exclusive outlets in the country but is hampered by the high import duty.

I want to make a big splash in India with Papua New Guinea coffee. Coffee import duty has increased to 110 percent, which is a roadblock. However, the country is collaborating with India on this “Maitra explained.

The duty reduction will benefit Papua New Guinea’s 20 lakh farmers, he said.

Though some channels sell PNG coffee in India, he explained that due to a lack of experience zones, awareness among Indians is low.

“I intend to open at least three to four exclusive PNG coffee shops in Kolkata before gradually expanding to 300 outlets across the country in order to increase coffee’s popularity in India. We are currently developing the coffee shop’s brand “Maitra is also credited with drafting the PNG government’s double taxation avoidance agreement with New Delhi.

Additionally, the NRI entrepreneur stated that he wishes to establish a processing unit in West Bengal or Odisha in order to mitigate the impact of the 110 percent impact duty.

“Due to the fact that both green and roasted beans are subject to the same duty, we will be able to save significantly by processing the beans in India, Maitra explained.

Green coffee beans are nearly half the price of roasted beans, he explained.

Once PNG coffee is rolled out from the proposed Indian processing unit, Maitra estimates that it will cost around Rs 3000-4000 per kg at the retail level in this country.

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