Shares of Tata Coffee soared 12.34 percent, while CCL Products gained 9.69 percent, Tata Global Beverages climbed 4 percent and Bombay Burmah rose 3.62 percent on the BSE.
    
A proposal to this effect is under consultation of the Commerce and Industry Ministry, sources said. Currently, 100 percent 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.
    
According to sources, foreign players could be allowed to engage in rubber and coffee plantation, bring in laborers for 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, they said.

 

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