The Indian coffee cultivation has seen a marginal change in the crop mix. According to Indian Coffee Board statistics, the share of Arabica increased to 35.3 per cent in 2007-08 from 34.6 per cent in 2006-07 whereas Robusta declined from 64.7 per cent to 65.4 per cent.
As per the estimate put out by the coffee board, Robusta coffee production dropped by 10 per cent and Arabica by 7.2 per cent, and as a result there was a change in crop matrix.
The change in crop matrix is likely to affect the domestic coffee production for the year 2007-08. The production is likely to see a shortfall of 26,000 tonnes at 262,000 tonnes production, compared to 288,000 tonnes production the previous year.
However, according to the growers’ assessment this crop year (2008-09), Arabica coffee production is likely to alter and could be lower due to rampant infestation of white stem borer. Global coffee production for 2007-08 crop year witnessed 11.10 per cent decline and is estimated at 122.4 million bags (each bag contains 60 kg), compared to the previous year production of 133.5 million bags.
The decline in Brazilian and Vietnam coffee production was due to the off-year in biennial production cycle.
As for the coffee exports from India, there was a resurgence, as noted in terms of value realisation in 2007-08. Despite a decline in the quantum exported from 249,000 tonnes in 2006-07 to 218,000 tonnes in 2007-08, there was an increase in value realisation by Rs 30.96 crore. The unit value realisation per kg exported in the just-concluded fiscal was higher by Rs 12.73 a kg, compared to the previous year.
The world coffee price movement pattern was comparable to the price realisation at the domestic auctions. This is on the expected lines, as export orientation of the Indian coffee sector is high at 75 per cent (export as percentage of production).
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According to Upasi, the latest trend in coffee prices suggest that the price improvement witnessed in 2007 has further continued in the current year (2008). Indian Robusta Parchment coffee was well received in the coffee drinking markets of Italy and Japan and this led to higher price realisation.
Robusta coffee price was up by Rs 20.92 a kg at Rs 94.93 a kg during January-August 2008 as against Rs 74.01 a kg in the corresponding period in 2007.
Sri Lanka seeks Indian help to modernise tea industry
The Sri Lanka Tea Board has sought assistance from India to modernise its tea industry.
Lalith Hettiarachchi, chairman, Sri Lanka Tea Board told Business Standard, “We are here with three objectives — to learn good practices from India, implement them in Sri Lanka and modernise the tea industry there.”
The Sri Lankan delegation, led by the country’s Plantation Minister D M Jayaratne, comprises of Lalith Hettiarachchi, Dr Gerry Jayawardene, chairman, Tea Research Board, Dr Sarath Abeysinghe, secretary, Tea Board. The delegation visited Tocklai and Jorhat in Assam, the Tea Board in Kolkata and is now in Coonoor to study the practices of the south Indian tea gardens.
Listing out the objectives, Lalith Hettiarachchi said, “Since the Sri Lankan tea industry is buying fabricated machinery and equipment from India, we are here to work out the modalities with Indian fabricators. This can decide who we can help with subsidies to modernise their factories.”
The Lanka Tea Board has signed a Memorandum of Understanding (MoU) with the Tea Research Association — Tocklai and Tea Research Institute, Valparai (Tamil Nadu) — for technology transfer, sharing of germ plasm and training of Lankan scientific manpower in other Indian institutes.