 "Coffee exports dip marginally to 308,714 tonne in 2014")
India’s coffee exports have shown a marginal drop of 3.5 per cent in 2014 to touch 301,244 tonnes, compared to 312,364 tonnes the previous year.
In value terms, exporters ended the year with 6.2 per cent growth in earnings at Rs 4,986 crore against Rs 4,692 crore in 2013.
The average unit value per tonne increased 10.1 per cent to Rs 165,529, as against Rs 150,215 per tonne in 2013. This was mainly due to depreciation of the rupee against the dollar during the first half of last year. However, in dollar terms, the earnings remained almost flat at $819 million compared to $815 million in 2013, according to the Coffee Board.
Of the total exports, Indian-origin green coffee accounted for 243,224 tonnes, compared to 244,905 tonnes the previous year, a drop of less than one per cent. The 58,020 tonnes were re-exports, mainly in the form of valued-added or instant coffee. In 2013, India exported 67,459 tonnes of instant coffee.
At the beginning of the year, the Coffee Exporters Association had projected a five per cent decline in green bean export. However, strong demand for instant coffee arrested the decline to less than two per cent. The drop in exports was mainly on account of lower than expected production at 304,500 tonnes during 2013-14. It came down mainly due to adverse weather like extreme drought in the early part of 2013 and excess rain during the monsoon period.
With a 'better crop projected by the Coffee Board for 2014-15 at 344,500 tonnes, bean export for 2015 are likely to be around 10 per cent higher, Ramesh Rajah, President, Coffee Exporters’ Association, had told Business Standard last year.
Bean prices witnessed wide fluctuation. After a peak during the January-March quarter, these went down to their lowest of the year during April-June, before recovering in the July-September quarter.
The rise in prices was mainly due to rumour that Brazil was heading for a shorter crop in 2014. Subsequently, this proved wrong.
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.
Prices have been fluctuating over a year. After a record low of around 100 cents per lb (pound) in November 2013, they hit peak of 210 cents per lb in the first quarter of 2014 as news of a 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 from a near six-year low on Wednesday, as year-end buying boosted prices to a 50 per cent rise for the year, as a drought in Brazil boosted Arabica to the biggest annual gain on a 19 commodity index. The front-month March Arabica coffee contract settled with a daily gain of 1.8 cents, or 1.1 per cent at $1.6660 cents a lb, after falling to $1.64, its lowest since July 18. LIFFE March Robusta coffee futures settled up $10 at $1,916 per tonne, ending the year up 13.8 per cent, its strongest performance since 2010, underpinned by robust global demand,” Coffee Board said.
Italy remained the main market for Indian coffee, accounting for 22 per cent of the total exports. It was followed by Germany (9.9 per cent) and Russian Federation (7.4 per cent) among others. CCL Products (India) Ltd, ITC Limited, Allanasons Limited, Tata Coffee Ltd and Nestle India Limited were the top five exporters from the country.
In value terms, exporters ended the year with 6.2 per cent growth in earnings at Rs 4,986 crore against Rs 4,692 crore in 2013.
The average unit value per tonne increased 10.1 per cent to Rs 165,529, as against Rs 150,215 per tonne in 2013. This was mainly due to depreciation of the rupee against the dollar during the first half of last year. However, in dollar terms, the earnings remained almost flat at $819 million compared to $815 million in 2013, according to the Coffee Board.
Of the total exports, Indian-origin green coffee accounted for 243,224 tonnes, compared to 244,905 tonnes the previous year, a drop of less than one per cent. The 58,020 tonnes were re-exports, mainly in the form of valued-added or instant coffee. In 2013, India exported 67,459 tonnes of instant coffee.
At the beginning of the year, the Coffee Exporters Association had projected a five per cent decline in green bean export. However, strong demand for instant coffee arrested the decline to less than two per cent. The drop in exports was mainly on account of lower than expected production at 304,500 tonnes during 2013-14. It came down mainly due to adverse weather like extreme drought in the early part of 2013 and excess rain during the monsoon period.
With a 'better crop projected by the Coffee Board for 2014-15 at 344,500 tonnes, bean export for 2015 are likely to be around 10 per cent higher, Ramesh Rajah, President, Coffee Exporters’ Association, had told Business Standard last year.
Bean prices witnessed wide fluctuation. After a peak during the January-March quarter, these went down to their lowest of the year during April-June, before recovering in the July-September quarter.
The rise in prices was mainly due to rumour that Brazil was heading for a shorter crop in 2014. Subsequently, this proved wrong.
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.
Prices have been fluctuating over a year. After a record low of around 100 cents per lb (pound) in November 2013, they hit peak of 210 cents per lb in the first quarter of 2014 as news of a 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 from a near six-year low on Wednesday, as year-end buying boosted prices to a 50 per cent rise for the year, as a drought in Brazil boosted Arabica to the biggest annual gain on a 19 commodity index. The front-month March Arabica coffee contract settled with a daily gain of 1.8 cents, or 1.1 per cent at $1.6660 cents a lb, after falling to $1.64, its lowest since July 18. LIFFE March Robusta coffee futures settled up $10 at $1,916 per tonne, ending the year up 13.8 per cent, its strongest performance since 2010, underpinned by robust global demand,” Coffee Board said.
Italy remained the main market for Indian coffee, accounting for 22 per cent of the total exports. It was followed by Germany (9.9 per cent) and Russian Federation (7.4 per cent) among others. CCL Products (India) Ltd, ITC Limited, Allanasons Limited, Tata Coffee Ltd and Nestle India Limited were the top five exporters from the country.