Container shortage hits exports

Already impacted by the rising rupee and price mismatch, India's coffee exports have now been hit by non-availability of food-grade shipping containers, according to a senior industry official.

"There are no food-grade containers available at Kochi airport, which has led to a 10 to 15-day delay in shipments," said Ramesh Rajah, president, All India Coffee Exporters' Association. India's coffee exports are mainly shipped through Kochi port. Some of it goes through Chennai and New Mangalore ports.

Coffee exports in January-July were down 6 per cent at 1,43,767 tonnes, according to data from the Coffee Board of India.

Exporters have held back from signing deals as Indian coffee has been quoting higher than international prices. A stronger rupee has also affected realisations for coffee growers.

India traditionally exports 80 per cent of the coffee it produces.

"We have been getting export inquiries, but a shortage of containers is delaying shipments," said A N Devraj of Sarathy Curing Works.

Rajah explained that buyers may also cancel orders if the delay persists. Buyers, especially in Europe, will not wait for supplies from India, but look to other countries, exporters said.

Rajah said that shipping lines had attributed the shortage of containers to a higher demand from China.