| India's coffee exports in 2006 (Jan-Dec) stood at 202,205 tonne, up 20 per cent from 2005, according to the data released by Coffee Board of India.
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| The country's coffee exports last year rose on the back of favourable overseas prices and better supply, industry officials said.
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| India exports 80 per cent of its coffee output, while the rest is used for domestic consumption. Total permits issued by Coffee Board of India were for export of 219,269 tonne in 2006, against 171,262 tonne in 2005.
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The board allows export of Plantation PB, Plantation A, and Plantation Blacks grades among others in the arabica variety. Robusta coffee exports comprise varieties such as Plantation Bits, Plantation Bulk, and Cherry Browns.
SPREADING AROMA
Export details, in tonne | | Varieties |
January-December |
% chg | | 2005 | 2006 | | Arabica Parchment | 39,463 | 47,172 | 19.53 | | Arabica Cherry | 10,221 | 10,732 | 5.00 | | Robusta Parchment | 20,333 | 24,319 | 19.60 | | Robusta Cherry | 78,483 | 99723.00 | 27.06 | | Instant coffee | 19,960 | 20,259 | 1.50 | | Source: Coffee Board of India |
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| "The main trigger that has led to the rise in exports were favourable overseas prices, prompting companies in India to enter into more deals," said Anil Kumar Bhandari, former chairman, United Planters Association of Southern India.
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In 2006, average overseas prices of arabica bean hovered between $1.01-$1.03 a pound, compared with $0.86-0.89 a pound in 2005. Since prices were attractive, farmers were willing to offload their stock last year, said a dealer in a multi-national coffee house.
COFFEE EXPORTS IN 2006 (In tonne)
General Commodities, an integrated commodity exporter, has emerged as the leading coffee exporter in 2006 after overtaking Tata Coffee, HLL and ITC | | Company | Arabica | Robusta | Total | | General Commodities | 7,725 | 22,263 | 29,988 | | Allana Sons | 13,253 | 15,962 | 29,215 | | CCL Products-India | "� | 17,810 | 17,810 | | Olam Exports-India | 1,515 | 13,775 | 15,290 | | Nestle India | "� | 14,318 | 14,318 | | Hindustan Lever | 2,499 | 11,611 | 14,110 | | Amalgamated Bean Coffee Trading | 7,337 | 5,968 | 13,305 | | Tata Coffee | 914 | 12,171 | 13,085 | | Ned Commodities India | 2,800 | 9,309 | 12,108 | | ITC | 3,847 | 8,194 | 12,041 | * In 2006,the Coffee Board issued export permits for 2,52,862 tonne, against 2,06,633 tonne in 2005
* Quantity exported was 2,30,304 tonne in 2006, against 2,03,768 tonne in 2005
* In value terms Rs 1,806.58 crore ($405.58 million) of coffee was exported in 2006 as against Rs 1,451.65 crore ($338.39million) in 2005 |
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| "After 5 years of bearishness in overseas coffee prices, last year we saw a good rise in rates. This prompted both dealers and farmers to make maximum use of the opportunity," said a dealer in Bangalore.
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| "Compared to the previous year (2005), this year's supply was good as both the crop and the carryover stock were largely comfortable," said the dealer with the multi-national coffee house.
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| In 2005, farmers had refused to release their stock in anticipation of higher prices.However, dealers said the growth in coffee exports in the first quarter of 2007 could be limited due to tight supply.
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| Dealers said the new crop could be lower than the estimates given by Coffee Board of India. In 2006-07(Oct-Sep), India is likely to produce 288,000 coffee, compared with the initial estimate of 300,300 tonne released by the board in July.
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| Dealers said the likely fall in coffee output is due to the white-stem borer disease, which could result in a 20 per cent crop loss in arabica plantations.
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| "I don't see the momentum withstanding as the fall in output will squeeze the supply," a dealer said. |
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