Even as Indian coffee planters achieved a record production of 5.33 million bags of 60 kg each (314,000 tonnes) in 2011, the country’s ranking in world coffee production has slipped to seventh position from sixth in the previous year.
With four per cent share in world output, India is ranked below Ethiopia (fifth rank) and Peru. Peru pushed down India for the first time and stood at sixth position, with a marginally higher production of 5.44 million bags. Peru recorded a year-on-year (y-o-y) growth of 34 per cent in output compared to 4.06 million bags in 2010. Its share in world coffee production is 4.1 per cent, according to the London-based International Coffee Organisation.
Brazil, Vietnam and Indonesia continued to hold the top three positions with 33 per cent, 15.2 per cent and 6.3 per cent, respectively. Though Brazil had an off-year, it remained an undisputed leader with a production of 43.4 million bags. Vietnam and Indonesia produced 20 million bags and 8.2 million bags, respectively.
“With four per cent share of world production, India slipped to the seventh position during the last coffee year (October-September) from sixth in 2010-11, as Peru in Latin America replaced us with 4.1 per cent share (5.4 million bags),” Marvin Rodrigues, a Karnataka-based planter and chairman of the Karnataka Planters’ Association, said.
He said new players like Peru and smaller countries like Ethiopia in Africa have overtaken India in production, thanks to their geological and climatic advantages and state incentives.
“Rich volcanic soil, favourable weather conditions throughout the year, availability of water and lower production costs have enabled these smaller countries remain ahead of India, despite six per cent increase in our production in 2011-12,” Rodrigues told Business Standard on the sidelines of the 119th annual conference of the United Planters’ Association of South India.
In spite of 13.3 per cent y-o-y decline to 6.5 million bags from 7.5 million bags in the same period, Ethiopia remained at the fifth position.
“Our production costs are also higher than these countries due to increasing wages, mandatory social costs like providing housing, healthcare and provident fund to the work force, rising overheads like fuel hike and state taxes/levies,” Rodrigues said.
India posted 28 per cent y-o-y export growth by shipping 5.8 million bags in 2011 as against 4.5 million bags in 2010. Its share in global exports was 5.6 per cent. Peru is below India in terms of exports with a share of four per cent. It exported 4.10 million bags, recording 7.62 per cent y-o-y growth.
Brazil, Vietnam and Colombia remained the top three exporters with 32.3 per cent, 17 per cent and 7.5 per cent share in world exports. Brazil shipped 33.4 million bags, Vietnam 17.6 million bags and Colombia 7.7 million bags.
Total world coffee exports crossed the 100-million-bag mark in 2011 to stand at 103.7 million bags. Better price realisation during the year has encouraged higher exports leading to reduction of stocks in many exporting countries.