Coffee exports dip by 7%

Coffee exports during January 1-August 30 were down 7.47 per cent at 159,248 tonnes, compared with 172,120 tonnes in the same period a year ago, according to data from the Coffee Board of India.

Weak overseas demand for arabica is the main reason for the decline in total coffee exports, according to Ramesh Rajah, president, All India Coffee Exporters' Association.

During the period, export of the arabica variety fell 36 per cent to 33,071 tonnes, while that of robusta declined 5 per cent to 83,804 tonnes.

Demand for Indian coffee was weak in the international markets mainly because Indian sellers were quoting rates higher than their global counterparts. 
 

LOSING FLAVOUR
Varieties	(2007) Jan - Aug 30	(2006)  Jan - Aug 30
Arabica Parchment	24,667	42,969
Arabica Cherry	8,404	8,415
Robusta Parchment	16,935	17,858
Robusta Cherry	66,869	70,208
Instant coffee	33,496	12,826
Instant coffee re-exports	8,877	19,844
Source: Coffee Board of India

"It is very unlikely that exports would pick up in the rest of 2007. Export demand may emerge in the first quarter of 2008 when the new Indian crop arrives," Rajah said.

Traditionally, India has been exporting 80 per cent of its production. "Left-over stocks would be sold in the domestic markets," Rajah said. However, instant coffee exports during the period rose to 33,496 tonnes compared with 12,826 tonnes, helping offset the decline in exports.

Re-exports were down at 8,877 tonnes compared with 19,844 tonnes a year ago.

Re-exports are exports of imported coffee after value-addition. International coffee exports in the first 10 months of the coffee year that starts October rose 13.3 tonnes to 81.52 million bags (1 bag=60 kg), the International Coffee Organisation said today.

In July, global coffee exports were at 7.75 million bags, up 1 per cent on year, ICO said.

However, exports in July were lower than June's 8.01 million bags.Exports of arabica coffee during October-July rose 10.3 per cent to 53.09 million bags.

Robusta exports rose 19.3 per cent to 28.43 million bags.

Brazil, world's leading exporter of coffee, sold 24.22 million bags in October-July, up 20 per cent from year-ago period.

Exports from Vietnam, world's largest producer of robusta coffee, were at 15.85 million bags, up 43 per cent on year.

Coffee Board allows export of Plantation PB, Plantation A, and Plantation Black varieties, among others in the arabica grade. Robusta coffee exports comprise varieties such as Plantation Bits, Plantation Bulk, and Cherry Brown.