Coffee exports down 21% on lower supplies, high price

India's coffee exports have nosedived by over 21 per cent to 1,40,162 tonnes during the first nine months of 2008-09 crop year mainly due to limited supplies and higher prices, the Coffee Board said.     

Coffee exports stood at 1,77,987 tonnes in the same period last year, it said.     

The coffee year runs from October to September.     

"It is the worst slump in India's coffee exports as shipments declined both in value and volume terms because of a combination of factors such as lower crop, higher prices and the economic recession," All-India Coffee Exporters Association President Ramesh Rajah told PTI.     

The maximum fall was witnessed in the shipment of instant coffee, which plunged by 31 per cent to 35,688 tonnes during October-June, compared with 52,205 tonnes a year ago, according to the data of the Coffee Board.    

Arabica shipments dipped by 26 per cent to 29,024 tonnes from 39,247 tonnes, while robusta dipped to 75,450 tonnes from 86,535 tonnes during the review period, it said.       

The Board has downsized the coffee output for 2008-09 season to 2,62,000 tonnes from 2,93,000 tonnes after excessive rain damaged crops in Karnataka, the biggest coffee producing state.    

A market expert said exports declined as Indian coffee was ruling above international prices.

The expert said Indian arabicas were commanding a premium of 20-30 per cent, while the robusta prices were quoting with a premium of $500-700 per tonne, compared to Indonesian, Brazilian and Vietnamese coffee.     

Rajah said that the economic slowdown has affected the export of instant coffee to Russia and eastern Europe. "It does not look that we will make up in the next six months."   

"Amid such situation, the country's total exports during the current coffee year could be less than 1.8 lakh tonnes," he noted.     

India exports coffee to Italy, Russia, Germany, Belgium and the Arab countries.     

Meanwhile, global exports have increased by three per cent to 65.69 million bags in the first eight months of 2008-09 coffee year, compared with million bags in the same period the last year, according to International Coffee Organisation. One bag contains 60 kgs of coffee.