International Coffee Organization producers and consumers still have sizable problems to overcome before a price- stabilizing coffee pact can be put in place on Oct. 1, traders said.
At the ICO meeting in London this week, major producers proposed a conditional two-year extension of the current International Coffee Agreement, which is scheduled to expire Sept. 30.However, the plan was rejected by producers of high-quality coffees - the ''other milds" group - and received only a lukewarm reaction from the United States, the ICO's leading consumer member.
"The producer proposal was mildly encouraging, but if it doesn't gain the support of all producers and consumers, then it's no good," one trader commented. "There are still huge problems to be overcome, and I don't see any immediate solutions," he added.
Another trader echoed that view.
"We're seeing more rhetoric than substance. I still don't think anything has dramatically changed," he said.
The proposal to extend the current ICA was put to the ICO council Tuesday by Colombia, Brazil, all the African producers and mild arabica producer El Salvador.
The plan called for the current ICA to be extended, retaining its global export quota for the 1989-90 (October-September) and 1990-91 coffee years, with adjustments to include an element of selectivity.
Consumer members, in particular the United States and the European Community, called for more top-quality coffees and an end to the two-tier market under which producers illegally sell coffee to non-ICO members for up to 50 percent less than member importing countries pay.