Coffee Exports Rise On Bigger Harvest.

Coffee exports from India, Asia’s third-biggest producer, surged 44% in eight months through May on a bigger crop, and as high prices spurred sales by growers, the state-run Coffee Board said.

Shipments increased to 247,372 tonne between October 1 and May 31, from 1,71,704 tonne a year earlier, the board said in an e-mailed statement on Wednesday. Exports were valued at $716.8 million, almost double the $364.3 million a year earlier.

Robusta coffee prices in London have rallied 92% in the past year, while arabica futures in New York jumped to a 14- year high in May, raising costs for Nestle and Kraft Foods , as smaller global crops and rising demand cut inventories.

“Prices have been good as there is a shortage in the global market,” said A.K. Bhandari, a coffee grower and a member of the board. Exports will continue to increase as coffee prices remain high, he said.

Shipments fetched an average R1,32,854 a ton for Indian shippers in the October-May period, compared with R1,01,895 a year earlier, data from the board showed.

Arabica futures may “remain firm” for the next couple of months and will trade below the 14-year high of $3.089 a pound reached on May 3, Bhandari said.

July-delivery arabica futures declined as much as 0.4% to $2.636 a pound in New York on Wednesday, while robusta coffee for delivery in the same month shed as much as 0.6% to $2,586 a tonne.

Arabica is grown mainly in Latin America and brewed by specialty companies including Starbucks , Robusta, used in instant coffee, is harvested in Asia and parts of Africa.

India’s shipments since the beginning of 2011 jumped to 1,81,308 tonne valued at $559.1 million, compared with 127,160 tonne worth $268.9 million a year earlier, according to the board.Italy and Russia are among the buyers of Indian coffee.

Source : financialexpress.com