[article]
| Title : |
Analysis of floor price trend of raw coffee in Nepal |
| Material Type: |
printed text |
| Authors: |
G. Luitel, Author ; Acharya,B., Author |
| Publication Date: |
2022 |
| Article on page: |
15-23 p. |
| Languages : |
English (eng) |
| Keywords: |
Coffee, floor price, price trend, price index, green bean equivalence |
| Abstract: |
Nepalese coffee industry has passed a long way of production, processing and marketing. Coffee as a high value
crop with floor price helped farmers to sustain their production. This study reviews the historic approaches of
floor price fixation system and its trend using secondary data of National Tea and Coffee Development Board
(NTCDB). The floor prices were averaged and converted into Green Bean Equivalent (GBE) units and analysed
in different time zones. It was found that the floor price fixation system has been changing over years. The floor
price was roughly based on transportation cost in earlier years. Grading-based price fixation of fresh cherry
came into practice during 2002/03-2005/06. Eventually, more precise and practicable floor price measures were
introduced for different quality grades, which was practiced for almost a decade from 2006/07 to 2014/15. Starting
from 2015/16, previous approach was slightly modified based on organic certification which is still in practice.
Moreover, it was found that the price of raw coffee has increased notably over years. While the price index of raw
coffee in 1994/95 was merely 26.37, it has increased by more than nine times to 243.12 in 2021/22. Since higher
priced raw coffee will not make it competitive in the global market, the floor price should be adjusted based on
international market trend, considering macroeconomic parameters as well. |
| Link for e-copy: |
https://afu.edu.np/sites/default/files/Analysis_of_floor_price_trend_of_raw_coff [...] |
in Journal of Agriculture and Forestry University > Volume 5 (2022) . - 15-23 p.
[article] Analysis of floor price trend of raw coffee in Nepal [printed text] / G. Luitel, Author ; Acharya,B., Author . - 2022 . - 15-23 p. Languages : English ( eng) in Journal of Agriculture and Forestry University > Volume 5 (2022) . - 15-23 p.
| Keywords: |
Coffee, floor price, price trend, price index, green bean equivalence |
| Abstract: |
Nepalese coffee industry has passed a long way of production, processing and marketing. Coffee as a high value
crop with floor price helped farmers to sustain their production. This study reviews the historic approaches of
floor price fixation system and its trend using secondary data of National Tea and Coffee Development Board
(NTCDB). The floor prices were averaged and converted into Green Bean Equivalent (GBE) units and analysed
in different time zones. It was found that the floor price fixation system has been changing over years. The floor
price was roughly based on transportation cost in earlier years. Grading-based price fixation of fresh cherry
came into practice during 2002/03-2005/06. Eventually, more precise and practicable floor price measures were
introduced for different quality grades, which was practiced for almost a decade from 2006/07 to 2014/15. Starting
from 2015/16, previous approach was slightly modified based on organic certification which is still in practice.
Moreover, it was found that the price of raw coffee has increased notably over years. While the price index of raw
coffee in 1994/95 was merely 26.37, it has increased by more than nine times to 243.12 in 2021/22. Since higher
priced raw coffee will not make it competitive in the global market, the floor price should be adjusted based on
international market trend, considering macroeconomic parameters as well. |
| Link for e-copy: |
https://afu.edu.np/sites/default/files/Analysis_of_floor_price_trend_of_raw_coff [...] |
|
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