New Arabica crop opens weak at farm gate

The new Arabica coffee crop (for crop year 2007-08) has opened weak at the farm gate. Arabica parchment has been quoted 4.25 per cent lower at Rs 4,500 (for 50 kg bag) as against the opening price of Rs 4,700 quoted last year (2006-07).

Currently, Arabica picking is in progress in Kodagu, Hassan and Chikmagalur and is likely to be completed by mid-January. Robusta coffees are to arrive later in February-March.

The industry attributes this weak opening to the lack of interest from coffee exporters.

"It is the exporters who rush in early and book orders on behalf of their clients in Europe and America. But this year, they are playing it safe after taking a hit due to the fluctuating dollar," said B L Harish, proprietor of BLAN Coffee, Somwarpet.

"Added to the misery of low prices, untimely rains are lashing the coffee growing regions in the last two days. This is worrisome to growers and traders as it is likely to affect the quality of coffee entering the market," he added.

A K Devaiah, manager-coffee operations, ITC, said, "The market is bullish. As coffee harvesting (picking) is going on, it takes time for trade to take off. This year's Arabica coffees from Kodagu look better as the region witnessed a lower crop last year."

The Coffee Board has lowered its post monsoon production estimate for Karnataka by 20,675 tonnes, citing heavy rains and incidences of blackrot and stalkrot diseases. "The impact of this is likely to be known only after June as there will be plenty of coffee for trade till then," said Harish.

According to the Coffee Board's statistics, Arabica production in Chikmagalur is down 6.92 per cent at 36,300 tonnes as against the post blossom estimate of 39,000 tonnes.

In Kodagu, it is down by 4.80 per cent at 24,750 tonnes as against 26,000 tonnes and Hassan also witnessed a fall of 24.11 per cent at 12,900 tonnes as against 17,000 tonnes.