Coffee exports rise 3% in 2013

Lower prices in intl markets offset gains due to rupee depreciation

India’s coffee exports recorded a marginal rise of three per cent to 313,128 tonnes for the calendar year 2013 (till December 27), as against 303,982 tonnes in the same period last year. In the full year ended December 31, 2012, India had exported 305,247 tonnes.

In value terms, the exporters earned $837.14 million, a decline of 7.55 per cent over the corresponding period of previous year. Between January and December 2012, the earnings stood at $909.66 million.

In rupee terms, however, the exporters earned a higher amount of Rs 4,705.63 crore as against Rs 4,616.62 crore due to depreciation against the dollar. In 2012, earnings from coffee exports stood at Rs 4,637.87 crore, the Coffee Board said.

The unit value realisation was lower at Rs 1,50,278 a tonne as against Rs 1,51,871 a tonne in the same period of previous year. Exports were especially higher during the last quarter of the calendar year. Bean exports during the period (October to December 27, 2013) went up 33.70 per cent to 59,159 tonnes as against 44,245 tonnes in the corresponding period last year.

While the value in rupee terms went up due to rupee depreciation to touch Rs 915.32 crore as against Rs 720.18 crore a year ago, the unit value realisation was lower at Rs 1,54,722 per tonne as against Rs 1,62,770 per tonne in the same period last year because of decline in the prices globally.

Rupee depreciation and a  rush to clear off carry-forward stocks were seen as the main reasons for jump in exports during the last quarter.  Growers, especially small and medium, rushed as they were in need of money to meet harvesting expenses for the current crop year. The harvest for Arabica and Robusta is progressing in major growing regions of South India, exporters said.

According to Ramesh Rajah, president, Coffee Exporters’ Association of India, while the rupee depreciation helped exporters earn higher dollar revenues during the year, the lower prices in the international markets offset the gain. Over the last year, Arabica prices have declined as much as 45 per cent to 110 cents a lb in the international markets. A huge off-year crop harvested by Brazil triggered the price crash.

Of the total exports Arabica beans accounted for 17.4 per cent at 54,746 tonnes, while the majority came from Robusta variety at 258,381 tonnes.

Italy continued to be the main market for Indian coffee in 2013, accounting for 24.56% of the total exports. It was followed by Germany (9.76%), Russian Federation (6.58%) and Belgium (5.55%).

CCL Products (India) Ltd, Allanasons Limited, NKG Jayanti Coffee Pvt Ltd, Nestle India Ltd and Tata Coffee Ltd were the top exporters of coffee during the year.