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| Cut coffee output to check price decline : experts | | | / Business Standard November 22,2001 | | | |
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| Cut Coffee Output To Check Price Decline : Experts |
| / BUSINESS STANDARD Nov 22, 2001, 00:00 IST |
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Coffee producers will have to reduce production to reverse the declining trend in prices, coffee experts say.
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| “Schemes to artificially boost market sentiment and raise prices will not help as there is excess coffee stock in the market. Therefore, there is a need to decrease coffee stocks in the next two to three years,” coffee sector specialist Harish Bijoor told Business Standard.
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Coffee prices are at their lowest due to a global bumper crop. While Vietnam is forecast to produce 9,00,000 tonne in the 2001-02 crop year, Indonesia's total production for the 2001-02 crop year is forecast to touch 3,15,000 tonne. India's output for the 2001-02 (October-September) season is estimated at around 3,25,000 tonne.
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Maintaining that the only way to arrest the decline in prices is by a fundamental correction in the demand-supply situation, Bijoor said: “This can be done by pulling out coffee bushes and reducing the planted area or by finding new avenues for liquidating the present coffee surplus. Such measures will boost market sentiment and firm up the prices gradually.”
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He added that prices can be expected to stabilise if the coffee crop is hit by an acute disease or a natural calamity, wiping out 30-40 per cent of the plantations.
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