Coffee tracks global uptrend

The current trend in world coffee prices is getting reflected in the price realisation in domestic auctions with coffee prices witnessing an upward movement.

The latest United Planters' Association of Southern India's (Upasi) 2005 report on the coffee sector said the prices during January-August this year indicate significant improvement in Arabica Parchment 'A' (60.3 per cent), Arabica Cherry 'AB' (75.9 per cent) and Robusta Cherry AB (57 per cent).

The average prices in 2004 for these three varieties were Rs 66.97, Rs 54.15 and Rs 35.34 per kg, respectively, showing an increase of 16.7 per cent, 40.2 per cent and 9.4 per cent, respectively.

Production: The crop year 2005-06 has already started in many of the coffee producing countries, and importantly in Brazil where latest estimates place the production at around 33.3 million bags (each bag contains 60 kgs).

Considering the lower production expected from Brazil, the world production during 2005-06 is estimated at 108 million bags.

As far as India is concerned, the post blossom forecast of the coffee board place the production during 2005-06 to be 294,000 tonne compared with 276,000 tonne in 2004-05.

Interestingly, forecast for 2005-06 indicates a higher Robusta and Arabica crop by 9.5 and 2.1 per cent respectively.

Exports
However, the export performance during 2004-05 was not impressive as the quantity exported from the country was lower by 16.3 per cent (194.8 thousand tonne) and the value realisation was lower by 4.3 per cent (Rs 1,108.74 crore).

The only comforting factor in export performance was the improvement in the unit value realisation which was higher by 14.3 per cent.