Planters see lower crop than estimated by Coffee Board for 2014-15

The Coffee Board has projected a record crop at 344,500 tonnes as against the planters' estimate of 300,000 tonnes for 2014-15

Even as Coffee Board has projected a record bean production of 344,750 tonnes for 2014-15 (post-blossom estimates), a growth of 13 per cent over the previous year, planters from across the country’s largest producing state do not agree with the Board. Planters peg the production to remain flat this year at 300,000 tonnes for the year.

Harvesting for the new Arabica crop has just begun at a few places in Karnataka, which accounts for 70 per cent of national output. The reason for stagnation in bean production is attributed to rampant attack of white stem borer (WSB) pest across Arabica growing regions in Karnataka.

Coffee Board is yet to announce their post-monsoon estimates for this year.

According to planters, the pest attack is so severe that many estates have resorted to uprooting of Arabica trees to avoid further spread of the borer.

“There has been a severe incidence of WSB pest in Arabica Plantations in Chikkamagalur, Hassan and Kodagu districts,” Karnataka Planters’ Association (KPA) Chairman D Govindappa Jayaram said.

The severe attack is due to continuous dry weather from October 2013 to April 2014 and high temperature touching as high as 38 degrees Celsius during April-May has spoiled Arabica prospects, he said.

Blossom rains were also delayed until the first week of April, which helped the pest to get active and spread across plantations.

“The KPA more or less agrees with Coffee Board as far as Robusta production, estimated at 239,000 tonnes. But, we do not agree with the Board over Arabica output, which is pegged by them at 105,500 tonnes. I think, it will hardly reach 60,000 tonnes for the year,” Jayaram told Business Standard.

He said another reason for low production is due to lower productivity in the country. India's combined productivity (Arabica and Robusta) is 809 kg per hectare during 2013-14 with 580 kg a hectare of Arabica and 1,011 kg of Robusta. Whereas, Vietnam and Brazil are way ahead of India with Robusta productivity of 2,188 kg per hectare and Arabica productivity of 1,257 kg per hectare, respectively.

“We have to seriously increase our productivity for coffee plantations to be sustainable and remain viable,” he added.

While higher crop in India will not have any bearing on the global coffee prices, the domestic prices are currently ruling in the higher range. This is mainly due to lower crop in Brazil, the world's largest producer. Brazil's Arabica output is forecast to drop a second consecutive year to 33.1 million bags (each bag is 60 kgs), breaking the biennial cycle for the first time in over two decades with a harvest 21% lower than the last "On-year".

The farm gate prices of Arabica parchment are currently ruling at 11,000 per bag (each bag is 50 kgs), about 37% higher than last year.