Coffee output dips 12% in 2013-14

India’s coffee production for 2013-14 has declined far below the Coffee Board’s post-monsoon estimates, dashing exporters’ hopes to make good of the high prices ruling in the international market. So far this season, exports have been contracted at lower prices.

According to information gathered by the Karnataka Planters Association (KPA) from its members, for the current harvesting season which has just ended (2013-14), the production of coffee beans (Arabica and Robusta about together) is 280,000 tonnes, 12 per cent lower than the previous year. In 2012-13, India had produced 318,200 tonnes. The current year’s production is also lower by 10 per cent compared to the Coffee Board’s post-monsoon estimates.

The reason for the drop is attributed to a long spell of drought after receiving blossom showers, followed by an extremely harsh monsoon. The monsoon started on time but continued unabated, with some areas witnessing continuous rainfall for 60 days and more.

The Board, which had projected a record production of 347,000 tonnes for the year in its post-blossom estimates, scaled it down to 311,500 tonnes after severe damage to the crop due to heavy rains between July and September 2013.

“We had differed with the Board estimates on production numbers. The production is more or less in line with our estimates of 280,000 tonnes. Most of our member growers have harvested an average 20 per cent less crop for this year,” said Nishant R Gurjer, former chairman of KPA and a grower. He said the crop suffered the twin disaster of drought during   March and April 2013 and then, continuous heavy rain during the monsoon. Karnataka accounts for 72 per cent of  national coffee production.

“We have seen two years of good crop. This year, it is on a lower side by at least 20 per cent. The final estimates are yet to come. The drop was due to unfavourable weather conditions in major growing areas. It would be mostly below 300,000 tonnes,” said Ramesh Rajah, president, Coffee Exporters’ Association of India.

KPA has estimated Arabica production at 80,000-90,000 tonnes and Robusta at 190,000 tonnes for 2013-14. As a result,  exporters will be left with much smaller quantity for exports this year.

The domestic consumption of coffee is steadily growing in the range of six per cent annually and is pegged at 125,000 tonnes in 2013. Currently, Arabica prices are ruling at a two-year high of 207 cents per pound (lb).

The farm gate prices are ruling at over Rs 11,000 per bag (each bag is 50 kg) in the growing regions. According to Rajah, the exporters had a carry-forward stock of about 30,000 tonnes at the beginning of the current year, which they have managed to export.