The government gave its approval for signing and ratification of the International Coffee Agreement, 2007 (ICA), which aims to strengthen global co-operation in coffee trade.
International Coffee Agreement (IPA) is a United Nations pact establishing the International Coffee Organization. It is designed to help stabilize coffee prices globally.
"India has significant interest in export of coffee, it would be immensely benefited from the membership of ICA," minister of state in Prime Minister's Office Prithvi Raj Chavan said after a meeting of the Cabinet Committee on Economic Affairs.
IPA 2007 will replace the 2001 agreement, which expires on September 30,2008.
A total of 50 countries are invited to sign the agreement as they recognize the exceptional importance of coffee to their economies.
India produces only 4% of the world's coffee but exports 70-80% of its output.
During the first five months of 2008, coffee exports increased by 3.6%. It exported mainly to Italy, Germany and Russia.
