You are here: Home » Markets » Commodities » Food & Edible Oils
Business Standard

Coffee exporters want rupee-rouble route for exports to Russia

For Indian coffee exporters, the Russian market is the third-largest destination, after Italy and Germany

Rajesh Bhayani  |  Mumbai 

Coffee exporters have sought the commodity be routed to Russia under a rupee-rouble trade mechanism.

Several exporters have postponed their consignments due to a fall in the rouble, which has depreciated 50 per cent in two quarters. While the depreciation has hurt Russia’s capacity to import, a sharp fall in crude oil prices has hit that country’s foreign exchange income, as Russia is a major exporter of crude oil.

Due to the fall in demand from Russia, coffee prices in the international market have softened. Prices of the arabica variety have fallen about 20 per cent in two months.

Exporters feel in an environment when the currency is highly volatile, allowing coffee shipment under the rupee-rouble route will be helpful, though the rate of the rouble has to be decided.

Against 40/dollar six months ago, the rouble now stands at 60/dollar.

Exporters have discussed the issue with the Coffee Board. An official of the board said, the reaction was mixed, with some exporters sending consignments, while others had postponed these. “However, they feel the Russian crisis is likely to have a deep impact. I feel if Indian coffee exports are allowed under the rupee-rouble arrangement, it will be helpful,” the official added.

For Indian exporters, the Russian market is the third-largest destination, after Italy and Germany. Annual exports to Russia stand at 28,000-30,000 tonnes.

The Coffee Board official hoped “with the winter setting in, it is likely coffee demand from Russia might be revived, as it is a daily consumption item”.

Globally, production is falling. It is expected Brazil, a major producer, will record a decline.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, December 23 2014. 22:34 IST