Frequently Asked Questions

Frequently Asked Question!

The founding members have incorporated FPO to collectively achieve objectives that would otherwise be of high cost and high risk for an individual grower. The objective of Biota Coorg FPO is to make the enterprise inclusive of all like-minded coffee growers. The intent of founding members is to build a collective which creates equal opportunity to all members.

The collaboration amongst all Members would target the following:

  • Collectively pool, process and market Quality coffee which will help in adding value to the
    commodity, in-turn enabling us to position ourselves in the Global Coffee Market.
  • Know the real value of their coffee through evaluations done by the FPO. This includes cup tasting and grade analysis.
  • Create a brand equity for our coffees that will help in earning better premiums internationally and domestically.
  • One must be a coffee grower with a Coffee plantation in Kodagu district in his/her name.
  •  A one-time membership/subscription of Rs. 10,000.00 (Rupees Ten thousand only) will have to be paid by cheque favoring “BIOTA COORG FARMER PRODUCER COMPANY PVT. LTD.
  • A minimum of 100 bags of cherry coffee/50 bags of parchment coffee [Arabica or Robusta] needs to be pooled with the FPO.
  • Coffees pooled lots needs to match harvesting and processing standards as per Standard Operating Procedure (SOP).
  • The Biota Coorg FPO will not ‘ BUY’ Coffee, members will Pool Coffee as per Criteria mentioned above. The Core Idea is to Grow and Process Quality coffee and market / sell coffee collectively.
  • Add value and market the pooled coffees through the FPO and thereby increase better price realization.
  • Reduce the number of intermediaries in the chain and capture margins for our pooled coffee to increase revenues collectively.
  • Individually earn more through differentiation of coffees based on evaluations and leveraging of niche market requirement.
  • Cupping analysis will be taken up at Coffee Quality Division – Central Coffee Research Institute , Coffee Board, Bangalore.
  • Individual Reports will be shared with members upon receipt.
  • As mentioned in the table mentioned below, we will segregate lots into 3 baskets, which will help us in differentiating lots based on CUP SCORES, which will in-turn enable us to place our coffee’s better in
    the international market.

Arabica/Robusta cherry = 11.5% (+/- 0.5%)
Arabica/Robusta Parchment = 10.5% (+/-0.5%)
Under-dried coffee will be re-dried at TATA COFFEE CURING WORKS (TCCW) as follows:
Members will be informed about the excess moisture with estimated cost of re-drying and expected loss of
weight at TCCW.
• On acceptance by member, coffee will be re-dried at TCCW, relevant charges and weight loss will
be debited to member. On non-acceptance by member, coffee will be returned to the member’s
estate with transport, along with loading/unloading costs being debited to member.
The reason to maintain at slightly lower moisture percentage compared to industry standards:
• To meet international quality standards for coffee and break away from the bulk commodity market,
we need to maintain moisture at 10-12% for best roast and cup quality.
• Stored coffee increases moisture content in the humid months and can increase moisture content
up to 1-2% depending on period of storage. Moisture beyond 13% will bleach, have mould growth,
and build up Aflatoxins that might lead to rejection in international market.
• To ensure that such rejections and loss of premiums does not occur with our coffees, the moisture percentage of acceptance by the FPO has been set at a lower level.

  • The FPO is exempt from direct tax/income tax and therefore exempt from 7B.
  • The net proceeds received from sale of grades/cured lot is apportioned to each member based on sample grade quantities.
  • However, payment is made by dividing the amount payable to the member by the unit of pooling, i.e., bags of cherry/parchment and documented accordingly.
  • As per the members and FPO records, sale/purchase of cherry/parchment will be done in deferred basis, thereby not incurring purview under 7B.
  • Sampling from all bags is collected at the members godown/Storerooms at the time of Pooling. One sample is kept with the member, and one taken by BIOTA for primary analysis.
  • Coffee is loaded and dispatched to TCCW.
  • A sample is collected from all bags received at TCCW and is milled, graded and individual
    members grade percentages recorded.
  • Final Payout for the season will be credited to individual growers account deducting expenses from Gross receipts.
  • Gross Receipts: will be the sum-up of receipts from various grades, incentives on Cup Scores (as realised), Premium earned by sale of Certified Coffee, Other Incentives.