Coffee exports fall 11% in Jan-Oct

Coffee exports during January 1-October 9 were at 182,744 tonnes, down 11 per cent from the same period a year ago, according to data from the Coffee Board of India.

Overall slack demand from overseas buyers drove exports down in 2007, according to Ramesh Rajah, president, All India Coffee Exporters Association, said.

During the period, export of arabica variety declined 31 per cent to 36,911 tonnes. Robusta coffee exports fell 12 per cent to 94,646 tonnes. Export demand for Indian coffee was weak mainly because rates were quoting higher than international prices.

Also, the rupee's appreciation against the dollar eroded profitability of exports.

The rupee has risen about 12 per cent since January. Exports are expected to remain slack in October-December, Rajah said. Coffee exports were good in the first quarter of 2007. Thereafter, the price mismatch coupled with rupee's firmness against the dollar slackened the growth of overseas sales, Rajah said.

Coffee exports may increase in 2008 when overseas demand picks up for the country's fresh crop, he said.

The country exports 80 per cent of its coffee production, while the rest is sold in domestic markets.

However, instant coffee exports during the period rose to 41,354 tonnes compared with 17,859 tonnes.

Re-exports were down at 9,833 tonnes compared with 26,289 tonnes a year ago. Re-exports are exports of imported coffee after value addition.

Coffee Board allows export of Plantation PB, Plantation A, and Plantation Black varieties among others in the arabica grade.

Robusta coffee exports comprise varieties such as Plantation Bits, Plantation Bulk, and Cherry Brown.