India exported 39,800 tonnes of coffee in October and November this year as against 30,859 tonnes in same period last year.
India’s coffee exports have registered an impressive 29% rise in the first two months of the current crop year (October 2013-September 2014). India exported 39,800 tonnes between October and November 2013 compared to 30,859 tonnes in the same period last year.
The rise in exports is significant as the previous year (October 2012-September 2013) had seen an overall decline of 5.24% to 2,99,582 tonnes.
“The depreciation of rupee and rush to clear off carry forward stocks were seen as the main reasons for sudden jump in exports during the first two months. Growers, especially small and medium, are in need of money to meet the harvesting expenses for the current crop year. The harvest for Arabica has already begun for the current crop,” said Ramesh Rajah, president, Coffee Exporters’ Association of India.
In dollar terms, Indian exporters have earned $100 million in two months as against $92.86 million in the corresponding period of previous year. In rupee terms, the exporters have earned Rs 620.53 crore as against Rs 499.76 crore in the same period last year.
The unit value per tonne has dropped to Rs 1.56 lakh from Rs 1.62 lakh between October and November, a drop of 3.72%.
India mostly exports coffee to Italy, Germany, the Russian Federation, Belgium and Spain. Robusta variety coffee is mainly used in preparation of instant drinks and espressos worldwide.
Rajah said while the rupee depreciation has helped exporters earn higher dollar revenues, the lower prices in the international markets has offset the gain. Over the last year, Arabica prices have declined as much as 45% to 110 cents per lb in the international markets. Huge off-year crop harvested by Brazil triggered the price crash during the last one year.
Nishanth R Gurjer, former chairman, Karnataka Planters’ Association (KPA) said the green coffee exports have been stagnant over the last year or so, while the instant coffee exports from India is increasing. “Small growers were not in position to hold on to their stocks and have cleared off their inventories. The exports in the first two months have mainly come from corporates,” he said.
Rajah added that the rise in exports is unlikely to sustain throughout the rest of the year. “The real picture will emerge only by April, when the harvest for current crop will be over and we will know how much stock will be available for exports. Going by the current indications the current year’s crop is short. The harvesting for Robusta will begin only by end of December or early January,” he said.
The Coffee Board has scaled down its projections for the current year by 10%. In its post blossom estimates, earlier this year, the Board had projected the production at 3,47,000 tonnes. The post-monsoon estimates are yet to be announced by the Board.
The KPA has estimated the crop to be at 2,90,000 tonnes this year. The crop is shorter this year as heavy rainfall during the monsoon season damaged crop in many growing regions in South India.
Source: business-standard.com/article/companies/coffee-exports-jump-29-in-first-2-months-of-coffee-year-113120200344_1.html
