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India's coffee exports dropped 5% in the 2012-13 marketing year on sluggish prices and lower supplies even as global demand remained reasonably good amid an economic slowdown, according to the Coffee Board.
The country exported 3,00,525 tonnes of coffee in the marketing year ended September compared with 3,16,160 tonnes a year earlier, its latest data showed.
"Two key developments -- fall in prices and lower stock of old crop -- affected volumes of exports in 2012-13," a senior Coffee Board official told PTI.
The value of coffee exports declined to Rs 4,548.84 crore from Rs 4,725.26 crore, while realisation was slightly higher at Rs 1,51,363 per tonne as against Rs 1,49,457 per tonne, according to the Board.
The robusta variety accounted for 70% of the coffee exports and the rest was arabica, the official said.
Attributing the fall in shipments to depressed global prices following large supplies from Brazil, the official said there was a declining trend in arabica rates at the beginning of the year and later prices of robusta too started falling.
Currently, arabica prices are ruling at a four-year low. The drop in global prices has discouraged domestic planters from selling their stock, the official said.
Traders did not have enough old stock to meet orders as they had exhausted much of it in the previous year, taking advantage of higher prices, the official said.
According to the Coffee Board, global demand was reasonably good in the 2012-13 despite the economic slowdown. Supplies increased because of higher crop output in other countries, especially Brazil, the world's largest grower and seller of coffee.
India exports coffee primarily to Italy, Germany, Russia and Belgium.
The board pegged coffee production at 3,47,000 tonnes in the 2013-14 marketing year. Harvesting of coffee will start in mid-October.
