Coffee exports down by 11.2%

Hit by appreciating rupee, weak demand.

Indian coffee exports (permit issued) for calendar 2007 is down 11.2 per cent at 222,000 tonnes compared with last year's (2006) exports of 250,000 tonnes, according to Coffee Board statistics.

The industry attributes this fall to the appreciating rupee, making Indian coffee exports less competitive in global trade, and weak overseas demand. Another key factor is that of growers demanding higher price for their produce.

But according to M P Devaiah, general manager-exports, AllanaSons, "The key reason for the shortfall in coffee exports in 2007 is less Arabica production and little carry forward in the Robusta crop."

"The appreciating rupee is a short-term phenomenon. Currently, it is exporters who are impacted and we will have to wait for 2007-08 exports to see how growers will get impacted," said A K Devaiah, manager-coffee operations, ITC.

Coffee exports in rupee terms was also down 13.59 per cent at Rs 1,668.49 crore in 2007 as against Rs 1,930.95 crore in 2006. In US dollar terms, it is down 8.08 per cent at $399.58 million as against $434.73 million in 2006.

However, in terms of unit value realisation, Indian coffee fetched 11.71 per cent higher prices over last year's realisation. The realisation in calandar 2007 stood at about Rs 88,048 per tonne compared with Rs 78,817 per tonne realised in the pervious year.

Among the countries buying Indian coffee, Italy continues to top the list. As on December 20, as per the Coffee Board statistics, Italy bought 52,496.10 tonnes (Arabica 9,483 tonnes and Robusta 43,013.10 tonnes), followed by Russian Federation 26,085 tonnes (2,592 and 23,493), Germany 11,800.50 tonnes (5,777.60 and 6,022.9), Belgium 9,212.4 (3,678.70 and 5,533.70) and Spain 8,778 (634.20 and 8,144.20).

---

A YEAR GONE AWRY

Exports at 222,000 tonnes compared with last year's 250,000 tonnes

In rupee terms, exports are down 13.59 per cent at Rs 1,668.49 crore against Rs 1,930.95 crore in 2006

In US dollar terms, it is down 8.08 per cent at $399.58 mn compared with $434.73 mn in 2006

In terms of unit value realisation, Indian coffee fetched 11.71 per cent higher prices over last year's figure