Coffee output likely to fall 8%

More worrying factor continues drop in Arabica production, which has been fetching good premium for planters

Coffee production for 2016-17 would be around 320,000 tonnes, eight per cent lower than 348,000 tonne in 2015-16, according to post-blossom estimates.

The more worrying factor is drop in Arabica production, which fetches good premium for the planters. The national drop was mainly due to irregular rainfall in Karnataka, which accounts for nearly 70 per coffee plantation. The state is expected to close 2016-17 with 229,000 tonne production, compared with 251,000  tonne in 2015-16.

Ahead of UPASI-KPA Coffee Conference, scheduled on October 14 and 15, Baba P S Bedi, chairman, Karnataka Planters’ Association (KPA) said hot and humid weather with high temperatures until April and the decline in water resources led to the fall in irrigation of Robusta.

Cultivation of Arabica, higher margin crop, has been coming down constantly. In 2015-16, Arabica cultivation was estimated at 103,500 tonne. This is likely to come down to 100,000 tonne in 2016-17. In Karnataka, Arabica cultivation is estimated at 74,485 tonne for 2016-17, compared with 78,650 tonne last year.

D Vinod Sivappa, president, United Planters’ Association of Southern India, attributed the drop to pest and crop-related diseases, increasing production cost and labour shortage. The association has asked CCRI to consider import of Arabica varieties which are white stem borer resistant, leaf rust resistant and genetically proven to be high yielders. They also want the Coffee Board to give funds to take up research in this regard.

Sivappa noted, India’s major strength has been Arabica, which got good demand globally, especially in Europe. Of India’s 3.5 per cent share in global coffee market, about half was for Arabica.

A decade ago, Arabica used to be around 60-70 per cent of the cultivation, today it has reversed, added AL RM Nagappan, chairman, UPASI Coffee Committee. Bedi noted, Arabica used to fetch around Rs 2 lakh a tonne, compared with Rs 1.25 lakh a tonne for Robusta, making Arabica more viable for planters, who are already bleeding but managing with multi-crops. Other factors impacting the sector are high capital investment in coffee effluent treatment plants, rise in cost of fertilisers and plantation inputs, EPF provisions, constrain on water and power resources and climate change among others, said Bedi.