Foreign buyers pick up Ananthagiri coffee via forward trading

Andhra Pradesh Forest Development Corporation Limited (APFDC) has sold 730 tonnes of Ananthagiri coffee beans to foreign countries through forward trading.

"We have bagged deals from five foreign buyers from Switzerland, Germany, France and Italy for supply of Anathagiri coffee beans. We have already sold 730 tonnes of coffee beans worth close to Rs 5.4 crore ($11.65 lakh) through forward trading. We will start exporting the material from January onwards and will deliver the entire 730 tonnes of coffee beans to the foreign buyers by March-end. We are exporting Arabica variety washed coffee beans," B Trinadha Rao, regional manager of APFDC, told Business Standard.

Ananthagiri estate coffee beans gained international reputation after receiving the best regional coffee award in the Cupping Competition-2003, held by Coffee Board at Boston, USA.

APFDC collects and cures the coffee beans variety wise in the Ananthagiri estate area. Around eight to nine varieties of coffee beans are being cultivated in around 10,000 acres in the area.

"Due to the variety wise coffee fruits' collection, we are getting good quality coffee beans after curing. Right from harvesting to the culmination point of curing, we use modern equipment and take utmost care about the quality. Owing to this, several foreign buyers are purchasing Ananthagiri coffee beans through forward trading," Rao said.

APFDC has produced only 883 tonnes of coffee beans in the last coffee crop season. Of the 883 tonnes, the corporation has exported only 40 tonnes.

However, due to good weather conditions, the corporation is expecting 1,500 tonnes of beans production this season, of which it targets to export not less than 900 tonnes.

"We have been receiving many enquiries for the export of coffee beans. Since we are expecting a further hike in the prices of coffee beans in the international market from January onwards, we will wait up to February to sell our product in the international market. We are also planning to earmark around 500-600 tonnes of coffee beans for some regular buyers in the domestic market," Rao said.

The corporation is expecting around 80 per cent growth in revenues from its coffee business this season. In the last coffee crop season, the corporation has earned revenues of Rs 5.33 crore, and it is expecting its revenues to touch Rs 10 crore this season.

"Ananthagiri coffee estates have generated 883 tonnes of coffee beans in the last crop season. Due to good weather conditions, the coffee beans production is expected to touch 1,500 tonnes this season. Besides an increase in production, the coffee prices have also increased in the domestic and foreign markets. We expect an additional Rs 5 on each kg of beans this season, as compared to the last season. We are aiming at achieving a Rs 10-crore revenue from coffee beans business this season," he said.