Coffee exports drop 5% in Jan-Aug

Indian coffee exports (permit issued) are down 4.59 per cent in the first nine months of 2007 at 1.66 lakh tonnes compared with 1.74 lakh tonnes for the same period last year, according to Coffee Board statistics.

Of the 1.66 lakh tonnes exported, Arabica parchment accounted for 26,887 tonnes (last year 44,309 tonnes), Arabica cherry 8,934 tonnes (8,983 tonnes), Robusta parchment (17,867 tonnes (20,555 tonnes), Robusta cherry 73,802 tonnes (83,430 tonnes) and Instant coffee 39,160 tonnes (17,159 tonnes).

The industry has attributed this fall in coffee exports to weak overseas demand followed by the demand for higher prices by Indian growers, which was higher than their global counterparts. However, in terms of unit value realisation, the Indian coffee fetched 16 per cent higher over last year's (2006) realisation.

The present year's value stands around Rs 88,000 per tonne compared with Rs 75,646 per tonne in the previous year. Even in dollar terms it is up 27 per cent at $2,092 per tonne compared with $1,648 per tonne last year.

Of the permits issued for exports, shipments confirmed were also down 11.55 per cent at 1.76 lakh tonnes compared with 1.99 lakh tonnes in 2006 (nine months).

Re-exports (value added in India after importing) for nine months (January to September) of 2007 was down to 9,501 tonnes from 24,765 tonnes for the same period last year. Instant coffee made up a major part of the country's re-exports.