Coffee exports down 5.3% this year

More dip expected, with rupee decline balanced by fall in global price, depressing shipment

India’s coffee exports for the first seven months of this calendar year (January to July) have declined by 5.3 per cent to 228,212 tonnes, compared to the corresponding period last year. This comprises 45,762 tonnes of Arabica, 126,676 tonnes of Robusta and 55,636 tonnes of instant coffee.

The decline is largely due to a drop in Arabica prices and lower production of Robusta beans during the earlier crop season. However, the rupee’s weakening against the dollar helped exporters recover some of the volume losses during the first seven months of this year, analysts said.

“Actually, we were expecting about 10-15 per cent decline in exports during the period. Thanks to a weaker rupee and higher demand for value-added coffee, the decline in exports during this period was trimmed. Till June, exports were down by 10 per cent. However, we still expect to close the current calendar year with about 10 per cent drop in overall exports, compared to last year,” said Ramesh Rajah, president, Coffee Exporters’ Association of India.

During calendar 2011, exports were 343,224 tonnes, valued at Rs 4,827 crore. Of this year’s export, that of Indian origin coffee fell 7.2 per cent to 195,531 tonnes between January and July, as against 210,791 tonnes during the same period last year. The export of value-added coffee was 32,681 tonnes, a growth of eight per cent over the 30,242 tonnes exported during the first seven months of last year.

Robusta Parchment (washed variety) has seen good demand in international markets, especially Europe. As a result, the price of this variety has almost doubled to Rs 7,900 per 50-kg bag, compared to about Rs 4,300 per bag in July 2011. European markets have been consuming more of Robusta as its percentage mix in blended coffee has gone up from 30 per cent to 50 per cent this year, said an exporter.

In value terms, total exports were flat at Rs 3,383 crore as against Rs 3,382 crore earlier. “Though the rupee weakened against the dollar, there was no gain for exporters as the prices of Arabica have declined by 35-36 per cent this year, from a high of 250 cents per pound in December last year to 160 cents per lb in June this year. Because of this drop, growers were reluctant to export their produce this year,” said M P Devaiah of Allanasons Ltd, an exporter.

India exports coffee to Italy, Germany, Russia, Belgium, Slovenia, Jordan, Spain, Malaysia, America and Greece, among others. Italy alone accounts for 27 per cent of all exports from India, followed by Germany and Russia. The top 10 exporters include NKG Jayanti Coffee, Allanasons, Amalgam-ated Bean Coffee, Tata Coffee and ITC.