Shares of coffee producers surged on Tuesday after a report
said that the government is weighing foreign direct investment in
plantation sector.
Tata Coffee surged 8.5 per cent to Rs 103.75 while CCL Products rose nearly 6 per cent to Rs 244.95. Tata Global Beverages advanced 2.7 per cent while Bombay Burmah gained 2.8 per cent. In comparison, Sensex was up nearly 0.4 per cent.
Press Trust of India on Monday, quoting sources, reported that the government is considering allowing foreign direct investment (FDI) in rubber and coffee plantation sectors.
A proposal to this effect is under consultation of the commerce and industry ministry, the report said. Currently, 100 per cent foreign investment is permitted through the government approval route in the tea plantation sector. However, FDI is not allowed in any other plantation sector or activity.
Meanwhile, tyre stocks also saw buying interest. Goodyear India, Apollo Tyres and CEAT were up between 1.5 per cent and 2 per cent.
The report added that foreign players could be allowed to engage in rubber and coffee plantation, engage labourers in plucking of coffee beans or collecting latex from rubber trees and processing of the raw material. Permitting foreign investment will also help India reduce import bill of rubber and boost India's coffee exports.
As per estimates, the country's coffee output is pegged at 3,31,000 tonne for 2014-15 crop year (October-September), against 3,04,500 tonne last year. India exported coffee worth $803 million in 2014-15 against $799 million in 2013-14.
Tata Coffee surged 8.5 per cent to Rs 103.75 while CCL Products rose nearly 6 per cent to Rs 244.95. Tata Global Beverages advanced 2.7 per cent while Bombay Burmah gained 2.8 per cent. In comparison, Sensex was up nearly 0.4 per cent.
Press Trust of India on Monday, quoting sources, reported that the government is considering allowing foreign direct investment (FDI) in rubber and coffee plantation sectors.
A proposal to this effect is under consultation of the commerce and industry ministry, the report said. Currently, 100 per cent foreign investment is permitted through the government approval route in the tea plantation sector. However, FDI is not allowed in any other plantation sector or activity.
Meanwhile, tyre stocks also saw buying interest. Goodyear India, Apollo Tyres and CEAT were up between 1.5 per cent and 2 per cent.
The report added that foreign players could be allowed to engage in rubber and coffee plantation, engage labourers in plucking of coffee beans or collecting latex from rubber trees and processing of the raw material. Permitting foreign investment will also help India reduce import bill of rubber and boost India's coffee exports.
As per estimates, the country's coffee output is pegged at 3,31,000 tonne for 2014-15 crop year (October-September), against 3,04,500 tonne last year. India exported coffee worth $803 million in 2014-15 against $799 million in 2013-14.
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