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Coffee prices in India edged up at a weekly auction last week, in line with international markets and helped by export demand.
Arabica plantation PB grade prices were higher by Rs 1,900 per 50 kg compared to the previous sale, while prices of A grade and C grade were higher by Rs 1,550 and Rs 1,660, respectively.
About 107,650 kg of coffee from the total 237,958 kg on offer were sold. Arabica coffee accounted for 163,684 kg, while robusta made up 74,274 kg.
Arabica coffee prices in New York for March delivery were higher by 25.70 cents per pound. Robusta coffee prices in London for March were higher by $113 per tonne compared to the previous auction.
Coffee exports from India jumped to 96,219 tonnes during the period October 1-February 7, compared with 73,062 tonnes in the same period last year.
Coffee output in India may fall 10.23 per cent to 311,500 tonnes in the year starting October 2013 due to untimely rains in southern Karnataka state, the major producer, the government-run Coffee Board said in its post-monsoon crop forecast.
India tea drops on poor quality
Average tea prices in India, the world's second-biggest producer, eased at last week's auction due to weak demand for poor grade leaf from packeters. The CTC (crush-tear-curl) grade leaf was sold at Rs 120.17 ($1.93) per kg last week, down 2 per cent from the previous auction, while the dust grade edged up 1.3 per cent to Rs 116.95 per kg.
"Large amount of stocks were unsold. Demand was weak for poor quality leaf from picketers. They have already bought enough to cater their medium term requirement," said a Kolkata-based dealer. India's tea production in 2013 rose by 6.5 percent from a year earlier to a record 1,200 million kg, the Indian Tea Association said in a statement, as small growers in the north-eastern part of the country plucked more leaves.
Sugar moves up in futures trade
Sugar prices moved up by 0.40 per cent to Rs 2,734 per quintal in futures trade today after speculators due to pick up in demand in the spot market supported by the ongoing wedding season.
However, ample supplies in the physical market capped the gains. At the National Commodity and Derivatives Exchange, sugar for delivery in March rose by Rs 11, or 0.40 per cent to Rs 2,734 per quintal with an open interest of 21,500 lots.
The sweetener for delivery in February also traded higher by Rs 10, or 0.37 per cent to Rs 2,689 per quintal in 13,450 lots. Analysts attributed the rise in sugar futures to pick-up demand in the spot markets supported by ongoing wedding season but ample supplies restricted the gains.
