Reduced global demand due to the economic crisis coupled with low coffee output back home has hit Indian coffee exports. For the coffee year ending September 2009, exports are set to register a 10-year low. According to industry estimates, the current coffee year (October 2008 - September 2009) would conclude with exports in the range of 180,000-190,000 tonnes, 14-18 per cent lower compared with 219,972 tonnes in the previous coffee year (October 2007-September 2008).
As on June 19, exports stood at 136,163 tonnes (October 2008-June 2009), whereas 169,966 tonnes were shipped out of India in the corresponding period of the previous year.
“Exports are still reeling from the impact of the global recession. The next 2-3 months are likely to be more or less flat for India, and by September, we will end up exporting in the range of 180,000-190,000 tonnes. With this, coffee exports will be at a 10-year low. Exports for the past 9-10 years have been more than 200,000 tonnes per annum,” said Ramesh Raja, president, Coffee Exporters Association of India.
India exports about 75 per cent of its produce. While offtake from European markets and the Russian Federation came down considerably this year due to the economic slowdown, India’s output also fell below expectations. There was heavy crop loss in the largest-producing state of Karnataka due to untimely and excessive rainfall and the berry borer menace. Hence, the coffee board had to trim its output forecast for October 2008 - September 2009. It is estimated that by September 2009, total output in the country will stand at 262,300 tonnes, which is 10 per cent lower than the initial (post-blossom) estimates of 293,000 tonnes.
However, the coffee board sees much hope in the next coffee year beginning October 2009, and has pegged the output at 306,300 tonnes—arabica 101,525 tonnes and robusta 204,755 tonnes. With not much rain so far, it is expected that harvesting will be duly completed, resulting in higher output. Timely advisories have been issued to growers to tackle the berry borer problem, said a senior official of the coffee board.
For the 2008-09 season, final output projection for Karnataka has been pared to 183,000 tonnes from the earlier estimate of 197,000 tonnes. However, for the new season, the board puts Karnataka’s output 20 per cent higher at 221,475 tonnes.