 "Coffee exports dip 1.7% in 2013-14 crop year")
Coffee exports declined by 1.7% to 294,011 tonnes for the coffee crop year ended September 2014 compared to 298,951 tonnes in the previous year. The coffee crop year is between October and September and crop harvesting begins in November and goes up to March.
On a financial year basis, exports were down 6.9% to 137,348 tonnes during the first six months compared to 147,618 tonnes. Normally, most of country's exports take place between January and June. During the fiscal ended March 2014, India?s bean exports stood at 312,454 tonnes, the state-owned Coffee Board said.
However, the Board has issued export permits only till September 17, 2014.
The drop in exports was mainly on account of lower than expected production at 304,500 tonnes during 2013-14, he said. The production came down mainly due to adverse weather conditions like extreme drought in the early part of 2013 and excess rains during monsoon damaged the crop.
He said shipments were at lower side during the last quarter of the crop year. The demand is likely to pick up during the second half of December as the fresh crop starts coming to the market by then.
With better crop projected for the crop year 2014-15 at 344,000 tonnes, bean exports for next year are likely to be around 10% higher, Rajah said.
In value terms, during the crop year, Indian exporters earned Rs 4,758 crore as against Rs 4,524 crore in the previous year, showing a year on year increase of 5.2%. This was mainly due to depreciation of rupee against the dollar. However, in dollar terms, exporters earned $777 million compared to 826 million, a decline of 6%.
Bean prices witnessed a wide fluctuation during the year. While they hit their peak during the January-March quarter, they went down to their lowest of the year during the April-June quarter before recovering in the July-September quarter.
The average unit value increased 7% to Rs 1,61,832 per tonne from Rs 1,51,332 per tonne in the previous year.
According to exporters, the depreciation of rupee against the dollar and higher prices that prevailed between February and May this year helped them to increase their exports during the year. The rise in prices was mainly due to rumours that Brazil was heading towards a shorter crop for 2014. Subsequently, this proved wrong as Brazil went on to harvest better crop than anticipated.
There are increasing reports that the 2015-16 crop will also be affected by the drought in Brazil that occurred at the beginning of this year.
Coffee prices have been fluctuating over the last one year. After witnessing a record low of around 100 cents per lb in November 2013, the prices hit the peak of 210 cents per lb in the first quarter of 2014 as the news of lower crop in Brazil hit the markets. Bean prices went down to around 165 cents per lb between June and July.
?ICE Arabica coffee futures rose on lingering concerns over drought-related crop damage in top grower Brazil. ICE December Arabica coffee futures closed up 2.1 cents, or 1.1%, at $1.9335 a lb, as dealers weighed up the impact of drought on production in top grower Brazil. LIFFE November Robusta coffee futures closed up $29, or 1.5%, at $1,992 a tonne,? Coffee Board said.
Italy remained the main market for Indian coffee accounting for 25% of the total exports. It was followed by Germany (11%), Russian Federation and Belgium among others.
On a financial year basis, exports were down 6.9% to 137,348 tonnes during the first six months compared to 147,618 tonnes. Normally, most of country's exports take place between January and June. During the fiscal ended March 2014, India?s bean exports stood at 312,454 tonnes, the state-owned Coffee Board said.
However, the Board has issued export permits only till September 17, 2014.
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"Exports were more or less in line with our expectations. At the beginning of the year, we had projected 5% decline in green bean exports. However, strong demand for instant coffee arrested the decline to less than 2%," Ramesh Rajah, President, Coffee Exporters' Association told Business Standard.
The drop in exports was mainly on account of lower than expected production at 304,500 tonnes during 2013-14, he said. The production came down mainly due to adverse weather conditions like extreme drought in the early part of 2013 and excess rains during monsoon damaged the crop.
He said shipments were at lower side during the last quarter of the crop year. The demand is likely to pick up during the second half of December as the fresh crop starts coming to the market by then.
With better crop projected for the crop year 2014-15 at 344,000 tonnes, bean exports for next year are likely to be around 10% higher, Rajah said.
In value terms, during the crop year, Indian exporters earned Rs 4,758 crore as against Rs 4,524 crore in the previous year, showing a year on year increase of 5.2%. This was mainly due to depreciation of rupee against the dollar. However, in dollar terms, exporters earned $777 million compared to 826 million, a decline of 6%.
Bean prices witnessed a wide fluctuation during the year. While they hit their peak during the January-March quarter, they went down to their lowest of the year during the April-June quarter before recovering in the July-September quarter.
The average unit value increased 7% to Rs 1,61,832 per tonne from Rs 1,51,332 per tonne in the previous year.
According to exporters, the depreciation of rupee against the dollar and higher prices that prevailed between February and May this year helped them to increase their exports during the year. The rise in prices was mainly due to rumours that Brazil was heading towards a shorter crop for 2014. Subsequently, this proved wrong as Brazil went on to harvest better crop than anticipated.
There are increasing reports that the 2015-16 crop will also be affected by the drought in Brazil that occurred at the beginning of this year.
Coffee prices have been fluctuating over the last one year. After witnessing a record low of around 100 cents per lb in November 2013, the prices hit the peak of 210 cents per lb in the first quarter of 2014 as the news of lower crop in Brazil hit the markets. Bean prices went down to around 165 cents per lb between June and July.
?ICE Arabica coffee futures rose on lingering concerns over drought-related crop damage in top grower Brazil. ICE December Arabica coffee futures closed up 2.1 cents, or 1.1%, at $1.9335 a lb, as dealers weighed up the impact of drought on production in top grower Brazil. LIFFE November Robusta coffee futures closed up $29, or 1.5%, at $1,992 a tonne,? Coffee Board said.
Italy remained the main market for Indian coffee accounting for 25% of the total exports. It was followed by Germany (11%), Russian Federation and Belgium among others.