March 31 (Bloomberg) -- India’s coffee exports, which make up 70 percent of the nation’s production, declined in the year ending March 31 after excessive rainfall damaged the crop in the nation’s main growing region.
Tata Coffee Ltd. and its local rivals shipped 204,171 metric tons this year, 8 percent less from a year earlier, according to preliminary data compiled by the state-owned Coffee Board. That’s less than the government’s target to ship 210,000 tons this year.
“The global economic slowdown and a weak rupee reduced the demand for Indian coffee,” N. Rangaswamy Reddy, deputy director at the Coffee Board, said in an interview. “Export volume declined because of the lower crop.”
India’s production may decline to 250,000 tons in the year started Oct. 1, 2008, down from 276,600 tons estimated by the board in November, according to Ramesh Rajah, president of the All India Coffee Exporters’ Association.
Shipments were valued at $521.19 million, compared with $512.1 million a year ago, Reddy said. That was less than the $525 million targeted by the government as robusta coffee prices declined 31 percent in the past year.
Exports fetched 112,254 rupees ($2,212) a ton on average, 20 percent more than a year earlier after the Indian rupee fell to a record low of 52.18 against the U.S. dollar on March 3, the board said. Sales in the January-March quarter totaled 55,811 tons, 20 percent less from a year earlier, Reddy said.
Italy and Russia are among buyers of Indian coffee this year.
Source : www.bloomberg.com