 "Coffee exports up 29%")
Coffee exports have registered a 29 per cent rise in the first two months of the crop year (October 2013 to September 2014). The country exported 39,800 tonnes, compared to 30,859 tonnes a year ago.
The rise is significant as the previous year (October 2012-September 2013) had seen a decline of 5.24 per cent to 299,582 tonnes.
“The depreciation of rupee and the rush to clear carry-forward stocks were the main reasons for the sudden jump. Growers, specially small and medium, are in need of money to meet the harvesting expenses for the current crop year. The harvest for Arabica has begun,” said Ramesh Rajah, president, Coffee Exporters’ Association of India.
In dollar terms, exporters have earned $100 million in the two months against $92.86 million a year ago. In rupee terms, the exporters have earned Rs 620.53 crore against Rs 499.76 crore. The unit value a tonne has dropped from Rs 1.62 lakh to Rs 1.56 lakh between October and November, a drop of 3.8 per cent.
India exports coffee mostly to Italy, Germany, Russia, Belgium and Spain. Robusta variety is mainly used in the preparation of instant drinks and espressos worldwide.
Rajah said while the rupee depreciation had helped exporters earn higher dollar revenues, the lower prices in the international markets have offset the gain. Over the last year, Arabica prices have declined 45 per cent to 110 cents a lb. Huge off-year crop harvested by Brazil triggered the crash.
According to Rajah, the rise is unlikely to sustain through the rest of the year. “The real picture will emerge by April, when the harvest will be over and we will know how much stock will be available for exports. By the indications, the current year’s crop is short. Harvesting for robusta will begin by December-end or early January,” he said.
The Coffee Board has scaled down its projections for the current year by 10 per cent. In its post-blossom estimates earlier this year, the Board had projected a production of 347,000 tonnes. The post-monsoon estimates are yet to be announced.
The rise is significant as the previous year (October 2012-September 2013) had seen a decline of 5.24 per cent to 299,582 tonnes.
“The depreciation of rupee and the rush to clear carry-forward stocks were the main reasons for the sudden jump. Growers, specially small and medium, are in need of money to meet the harvesting expenses for the current crop year. The harvest for Arabica has begun,” said Ramesh Rajah, president, Coffee Exporters’ Association of India.
In dollar terms, exporters have earned $100 million in the two months against $92.86 million a year ago. In rupee terms, the exporters have earned Rs 620.53 crore against Rs 499.76 crore. The unit value a tonne has dropped from Rs 1.62 lakh to Rs 1.56 lakh between October and November, a drop of 3.8 per cent.
India exports coffee mostly to Italy, Germany, Russia, Belgium and Spain. Robusta variety is mainly used in the preparation of instant drinks and espressos worldwide.
Rajah said while the rupee depreciation had helped exporters earn higher dollar revenues, the lower prices in the international markets have offset the gain. Over the last year, Arabica prices have declined 45 per cent to 110 cents a lb. Huge off-year crop harvested by Brazil triggered the crash.
According to Rajah, the rise is unlikely to sustain through the rest of the year. “The real picture will emerge by April, when the harvest will be over and we will know how much stock will be available for exports. By the indications, the current year’s crop is short. Harvesting for robusta will begin by December-end or early January,” he said.
The Coffee Board has scaled down its projections for the current year by 10 per cent. In its post-blossom estimates earlier this year, the Board had projected a production of 347,000 tonnes. The post-monsoon estimates are yet to be announced.