Coffee growers get better realisation

Coffee prices have also been ruling high in the last two months. On ICE futures-New York, Arabica coffee is trading between $1.20 and $1.50 a pound. At the London International Financial Futures and Options Exchange (Liffe), Robusta coffee is trading between $1900 and $2,200 per tonne.

According to B L Harish, proprietor of Blan Coffee, Kushalnagar, "The weak rupee for the last couple of weeks has led to a higher realisation for coffee growers in India. But what is worrying growers and exporters is the cost of logistics in the coffee supply chain due to higher oil prices."

But coffee exporters from countries whose currencies have appreciated against the dollar face a different situation. International Coffee Organization (ICO) Executive Director Nester Osorio in his coffee market report said "The weakness of the dollar and the continued increase in prices of oil products is hurting the coffee exporting countries. To face this crisis, some exporting countries have announced support measures for coffee producers to help them cope with the constantly growing fertiliser costs and unfavourable exchange rate movements."

To combat this, the Brazilian authorities have decided to renew the