Low output hits coffee exports

Exports drop 20 per cent in Jan-March ’09.

A continued slump in the global demand for coffee, coupled with low domestic production has hit Indian coffee exports further, with exports seeing a sharp 20 per cent fall in the first three months of the present calendar year. Coffee exports during January-March 2009 stood at 55,811 tonnes as against 70,162 tonnes during the same period last year.

According to the provisional data released by the Coffee Board, exports value in dollar terms was down 31.3 per cent, while in rupee terms it fell by 15.33 per cent. Exports value was $123.52 million (Rs 604.85 crore) in Jan-March ’09 as against $179.88 million (Rs 714.38 crore) in the corresponding period of the previous year.

Arabica accounted for 13,234 tonnes and Robusta exports were 30,151 tonnes. Instant coffee exports were to the tune of 12,427 tonnes. According to Ramesh Raja, president, Coffee Exporters Association of India, offtake from the European markets has sharply reduced and demand from the Russian Federeation has also come down. He maintains that the impact of the recession is going to continue and exports may remain flat in the next few months.

Due to untimely rain in Karnataka, harvesting has been low this year. Added to this were issues like lack of availability of fertiliser and menace of pests. Heavy monsoon rains in the respective zones resulted in berry drop due to wet feet conditions. This has resulted in reduction in total domestic output as Karnataka accounts for more than 60 per cent of the country’s coffee output.

The Coffee Board’s post-monsoon survey in November 2008 estimated the country’s new crop at 2,76,600 million tonnes. This was 5.6 per cent less than the post-blossom survey (May 2008) estimate of 2,93,000 tonnes. The arabica and robusta break up is 90,050 tonnes and 186,550 tonnes respectively. Arabica production has shown a decline of 9,950 tonnes (9.95 per cent) compared to robusta which has declined by 6,450 tonnes (3.34 per cent) over the post blossom forecast.

“A decline in domestic production has also hit exports,” said Coffee Board chairman G V Krishna Rau. Karnataka accounted for nearly 99 per cent of the crop reduction.