Higher prices dent India's coffee export by 22%

The country's coffee exports plummeted by 22 per cent to 2.41 million bags in the first 11 months of the 2008-09 crop year as Indian prices were ruling higher than competing countries like Vietnam and Columbia.

India, one of the key exporting countries, shipped about 2.41 million bags during October-August period of 2008-09 season, compared with 3.09 million bags in last year, the International Coffee Organisation (ICO) said in its report.

The coffee year runs from October to September. One bag contains 60 kg of coffee.

"The export orders booked were discouraging because our coffee prices were quoting 20-30 per cent higher in the global market compared to Vietnam and Columbia," All India Coffee Exporters Association President Ramesh Rajah said.

Indian traders were quoting on an average $1,400 per tonne of coffee against Vietnam's $1,200 per tonne. Our prices were very high at 180 cents per pound against Columbia's 150 cents per pound, he said.

"The expensive Indian coffee has helped Vietnam and Indonesia as their exports have surged sharply in the last couple of months," Rajah noted.

According to ICO data, the shipment from Vietnam rose by 9.87 per cent to 16.46 million bags during October-August period from 14.98 million bags in 2007-08. Similarly, export from Indonesia increased by 44.93 per cent to 6.87 million bags from 4.74 million bags.

The global coffee exports rose by 2.8 per cent to 90.5 million bags in the review period, ICO said.