Instant coffee exports up 5.5% in Jan-Feb

Instant coffee exports for the first-two months of 2008 is up 5.48 per cent at 15,125 tonnes compared with 14,338 tonnes a year ago. Instant coffee provisional re-exports stood at 6,868 tonnes as against 4,758 tonnes in the same period last year, according to Coffee Board statistics.

Robusta coffee is used extensively in the preparation of instant coffee. Russian Federation and other East European countries are major buyers of instant coffee from India. During January and February, nearly 8,000 tonnes were exported to these countries.

According to M H Ashraff, managing director, Tata Coffee, "These markets (Russian Federation and East European countries) are experiencing healthy 10 per cent plus annual growth for the last two-three years."

Tata Coffee has a significant portion of its revenues coming from these markets through instant coffee sales. "We expect to end this financial year (2007-2008) with 5,500 tonnes exports," he added.

As of March 13, the total coffee exports stood at 49,676 tonnes, of which Arabica Parchment constituted 10,728 tonnes (last year 7,834 tonnes), Arabica Cherry 2,771 tonnes (3,882 tonnes), Robusta Parchment 2,656 tonnes (3007 tonnes) and Robusta Cherry 18,396 tonnes (21,514 tonnes).

According to coffee exporters, domestic prices have appreciated by 20-25 per cent in the last two months. Ecom Gill Coffee Trading, Allana Sons and Hindustan Unilever (HUL) are active on the exports front.

In rupee terms, the country's coffee exports grew 21.38 per cent to Rs 498.68 crore in 2008 as against Rs 410.82 crore in 2007. In dollar terms, it is 25.12 per cent higher at $121.82 million in 2008 as against $97.36 million in 2007.

Italy continues to top the list of importing countries with 11,094.9 tonnes (Arabica 2,981.8 tonnes and Robusta 8,113.1 tonnes), followed by Russian Federation 5,771 tonnes (245.6 and 5,525.4 ), Germany 3,777.5 tonnes (2,702.5 and 1,075 ), Belgium 3,487.3 tonnes (1,724.7 and 1,762.6 ) and Finland 2,388.6 (nil and 2,388.6).