Bangalore: Coffee exports from India have started picking up from October, the first month of new coffee year 2009-10, after a steep fall in 2008-09. According to statistics available with the government-run Coffee Board, exports have touched 31,606 tonne in the first two months of the current crop year, up by 21% from 26,073 tonne in the same period a year ago.
With fresh Arabica coffee beans already hitting the market, exports would climb up steadily in months to come, said a Coffee Board official. “We expect coffee exports to cross 2 lakh tonne this year, as the crop output is expected to be much higher than last year,” said the official, who did not want to be quoted.
In 2008-09, coffee exports stood at 1, 52,199 tonne, as production declined owing to to pest attack and erratic rains. Production during the previous year stood at 2, 62,300 tonne, down from the earlier post blossom estimate of 2, 93,000 tonne. This year, output will cross 3 lakh tonne, which, in turn, would push up exports, the official added.
According to post blossom estimation of the Coffee Board, production for 2009-10 will touch 3, 06,300 tonne. The board is yet to release its post monsoon estimation. However, experts said that there would not be any major change in the post monsoon estimation, and it would match the board's post blossom projection.
The board is expected to release post-monsoon estimation by the second week of December.
However, the domestic coffee market has been witnessing lot of activities after new Arabica beans started arriving.
Coffee prices witnessed a marginal improvement in the auction conducted by the Indian Coffee Trade Association (ICTA) on Thursday.
Coffee prices were high last year but Indian exporters failed to yield benefits due to unavailability of stocks. This year, though exports are picking up, global coffee prices have come down, trade sources said. The unit value of Indian coffee at international market stood at Rs 1,05,207 per tonne during October-November 2009 compared to Rs 1, 14,854 in the same period a year ago.
Prices crossed 132 cents per pound in July 2008 and started tumbling from October 2008, according to International Coffee Organisation's composite price indicator. Prices touched the lower band of 103 cents per pound in December last year.
However, prices have started increasing from May this year, but international markets remained volatile in the past six months with price oscillating between 112 and 121 cents.
Average prices in November stood at 119.67 cent per pound.
Source : Financial Express