Coffee export likely to take 10-15% hit on poor production

Coffee export is likely to fall 10-15 per cent this year, as production has been hit due to dry weather in growing regions of Karnataka.

Karnataka accounts for 60 per cent of total production in the country.

Coffee Board of India recently cut output estimates by 10 per cent to 316,000 tonnes for 2017-18, from the earlier estimate of 350,400 tonnes. 

However, the total estimated output will be higher by 1.3 per cent over last year.

According to the estimate, output of the Arabica variety is pegged at 95,000 tonnes and that of Robusta at 221,000 tonnes.

“Due to dry weather conditions, production has been affected adversely, which will result in lower output. There is also lower carry-over stock. These two factors are likely to pull down exports by 10-15 per cent in the current calendar year,” Ramesh Rajah, president of the Coffee Exporters’ Association said.

Rajah also said exporters are reluctant to take new orders, as they feel it would be difficult to meet supply commitment due to the lower production. “The order book in the first six months was healthy. However, post the production estimates, exporters are not keen to take more commitment,” he added.

India exported 379,876 tonnes of coffee worth Rs 61.25 billion in 2017. Average realisation per tonne was Rs 161,257 during last year.

India exports around 70 per cent of its production. Italy is the largest market for Indian coffee, with 20 per cent of the total exports. Germany, Russia, Belgium, Turkey and the US are other key areas to which Indian coffee is exported.