India's coffee exports are likely to decline by 8-10 per cent in 2008-09 on account of rising domestic consumption coupled with persisting concern about a fall in production amid inconsistent rainfall.
"There could be a drop to the tune of 8-10 per cent in coffee exports. Greater demand from the domestic market, which is growing at double digits, will contribute significantly to this fall," Coffee Exporters' Association President Ramesh Rajah said.
Coffee exports stood at 2.10 lakh tonnes in 2007-08.
Rajah said exports would witness a quiet period from September to December, subdued by increasing domestic offtake.
However, shipments may accelerate after January, he added.
He ruled out any increase in domestic prices of coffee because of rise in demand, saying rates are already ruling at the higher level.
"Domestic prices are already high. If they are increased further, the industry would like to import coffee rather than take it from local buyers," Rajah said.
According to the data released by the Coffee Board, the total provisional exports of coffee, including re-exports, in the first seven months of the calender year rose by about 6 per cent to 1.50 lakh tonnes, compared with the year-ago period.
Meanwhile, inconsistency in monsoon in July added to the woes of coffee production.
