Coffee Operators receive Govt Price Incentive Support


According to Coffee Industry Corporation Ltd (CICL) Acting Chief Executive Officer Charles Dambui, under the government’s Covid-19 stimulus package, thirty-five licensed coffee operators have to date received the price incentive support.

During a recent disbursement of funds to the licensed operators Mr Dambui said CICL has received K10 million from the government to roll out the price incentive program under the Government’s Covid-19 stimulus package, with the aim of adding value to growers income through the licensed operators in all the participating coffee growing provinces.

So far 50% of the funds have been distributed to 35 licensed operators and 17 active cooperative groups from Eastern Highlands, Western Highlands, Enga, Simbu, Jiwaka, Morobe, Madang, East New Britain, Central, and Robusta coffee farmers in East and West Sepik under this government assistance program.

Out of the K10m, K8m was put towards coffee price incentive whilst K2m was put towards intervention support.

Dambui added that CICL is using the industry regulatory policy guidelines and CIC Act to roll out this project. The idea behind this as initially announced by the Agriculture Minister is to have the threshold at K6 for parchment Class 1 coffee and K2 for Cherry coffee to the benefit of the growers at the farm.

Mark Munnull of Kosem Coffee Ltd in Jiwaka stating that coffee farmers in the remote areas appreciated the price increase, as the cost of moving their coffee out to the market is very expensive, and often they are left with less returns after sales.

Managing Director of Kongo Coffee Ltd, Jerry Kapka, also shared on how coffee growers are going direct to their depots in Kundiawa and Chuave to receive the price support. The price support is already showing encouraging signs with improved quality and farmers are getting back to tend to their plots.

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