Jain Irrigation Systems signs MoU with Indian Coffee Board, shares rise 7%

The crop enhancement solutions provider informed the stock exchanges in a filing that it has become the first company in the world to develop a Tissue Culture protocol for coffee varieties.

The company has signed a Memorandum of Understanding with the Coffee Board of India for the commercial release of advanced high-quality, disease-resistant coffee plants to growers.

Under the MoU, Jain Irrigation will sell the identified coffee plants to growers directly while paying a royalty to the Coffee Board.

“This collaboration is set to transform the coffee industry,” Jain Irrigation said in a release.

The company has already released tissue culture banana, pomegranate and sweet orange plants. The firm claimed that these plants have led to better quality produce and higher assured income for farmers.

Jain Irrigation Systems has released seven high-yielding tissue culture varieties of Robustas and Arabicas coffee developed by its scientists.

The Coffee Board of India licenced these varieties to JISL and has now approved for commercial production and sale, Jain Irrigation said.

On the coffee sector, the company said that Indian coffee growers have been grappling with challenges such as ageing plantations and lack of quality planting material.

Tissue-cultured coffee plants offer several advantages that have the potential to reshape the large and growing coffee industry in India, it added.

Shares of Jain Irrigation rose by more than 7% to hit a high of ₹71.4 apiece on the NSE in morning deals. More than 74 lakh shares of the company changed hands in NSE.

Jain Irrigation shares have rebounded around 62% from its 52-week lows hit in March 2024. The stock is trading around 15% down from 52-week highs hit in June 2024.

Jain Irrigation shares were trading 5.67% higher at ₹70.44 per share on NSE at 10.25 am.