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Coffee exports likely to fall 15% this year

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India's exports are likely to decline 15 per cent to about 3,00,000 tonnes in the coffee year ending September, compared with 3,51,992 tonnes in the year ended September 2011.

According to of India, the sluggish demand in Europe, the reduced off-take in coffee plantation and a lower crop yield would lead to the decline in coffee exports.

During the nine-month period ended June, coffee exports fell six per cent to 2,65,918 tonnes, against 2,82,056 tonnes in the year-ago period. In value terms, however, exports rose four per cent to Rs 3,927 crore during the period.

“Exporters had estimated exports during the year would decline about 10 per cent. Things moved according to market expectations during the first three quarters of the current coffee year. However, we expect a further drop in the last quarter of the year, and we might end the year with an overall drop of about 15 per cent, with exports of about 3,00,000 tonnes,” said Ramesh Rajah, president, Coffee Exporters' Association of India.

Hoarding by farmers is another factor behind the fall in exports.

Global prices of Arabica parchment fell during the last few months. Currently, its price stands at Rs 8,100/50-kg bag, a drop of about 26 per cent, compared to the price in January.

For the January-June period, coffee exports fell four per cent to 2,08,395 tonnes. Indian-origin coffee exports fell eight per cent to 1,76,196 tonnes, compared with 1,91,632 tonnes in the corresponding period last year, while the price stood at Rs 1,47,881 a tonne, against Rs 1,41,362 a tonne in the year-ago period, a rise of 4.6 per cent.

Exports of Arabica fell 1.6 per cent to 41,918 tonnes, while exports of Robusta declined 6.6 per cent to 1,15,479 tonnes during the January-June period. During the same period, India exported 32,199 tonnes of instant coffee, a rise of 28 per cent over the year-ago period.

India exports coffee to Italy, Germany, Russian Federation, Belgium, Jordan, Greece and the US, among others.

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