Due to less carryover stock and low domestic robusta output, India’s coffee exports are likely to decline by 15 per cent to 250,000 tonnes for the financial year ending March 2012. During FY11, India had exported 294,000 tonnes. The fall in coffee prices in the international market is also seen as a reason for the decrease in exports.
“Coffee exports will be less this year, mainly because we had lower carryover stocks. Carryover stocks declined from about 40,000 tonnes to about 20,000 tonnes. Also, we expect the robusta crop to be lower by 15 per cent at about 190,000 tonnes,” said Ramesh Raja, president, Coffee Exporters’ Association.
Prices of coffee in the international market declined 20 per cent in the past two months from $2.30 per lb to $2 per lb.
India mostly exports coffee to Italy, Germany, Russia, Belgium and Spain. The robusta variety of is mainly used in preparation of instant drinks and espressos worldwide.
“Lack of uniform blossom showers last season and shortage of power and water resources during March last year were seen as the main reasons for a smaller robusta crop this year,” said Sahadev Balakrishna, partner, Netraconda Estates.
The arabica harvest is almost over in major growing regions, while the robusta harvest may stretch till mid-April.
The bad news for the sector is likely to continue during the next financial year as well, as exporters do not see any recovery soon. Exports of coffee are further expected to fall by 8-10 per cent during FY13 to 225,000-230,000 tonnes. Again, the main reason for poor performance is attributed to low carryover stock and lower robusta crop.
The farm gate prices of arabica are down 20 per cent to Rs 175 a kg and that is seen as one reason for farmers holding on to stocks. During January and February, export of arabica fell 21.4 per cent to 13,386 tonnes, as compared to 17,035 tonnes in the same period last year.
Farm gate prices of robusta are flat at about Rs 100 a kg, the same as last year. As a result, shipments of this variety have grown 38 per cent in the first two months of 2012 at 30,305 tonnes, as against 21,951 tonnes in the corresponding period last year. “However, we do not see the trend to continue in the next financial year as far as exports of robusta are concerned, due to lower domestic crop this year,” Raja said.
Export between January 1 and March 2 rose 13.5 per cent to 60,294 tonnes, as compared to 53,090 tonnes in the same period last year.
