The Hindu Business Line : Coffee Board sees exports rising in Jan-March

COFFEE exports, on a downswing, are expected to pick up during the remaining part of the year, while a much better performance is anticipated during January-March quarter 2006, according to Coffee Board Chairman, Mr G.V. Krishna Rau.

Responding to an e-mail query from Business Line, he concurred with the trade's view on exports picking up later this year and doing well during the early part of 2006.

Coffee exports have dipped sharply this year on non-availability of stocks. A section of the coffee industry feels that growers, who are expecting prices to rise further, have held stocks back.

Till September 9, total permits issued for exports have declined to 1.31 lakh tonnes (lt) from 1.84 lt during the corresponding period last year. Shipments reported during the period have slid to 1.16 lt from 1.79 lt.

"Due to the high volatility in prices noticed during the last few months, it is possible that coffee stocks are held back at various levels which has negatively impacted the export performance so far," Mr Rau said. The Coffee Board Chairman said enough stocks should be available for exports.

"Based on the production estimates for the year 2004-05, the Board expects adequate coffee stocks to be available in the supply chain to make up for the deficit in exports in the current financial year," he said. The coffee year runs from October to September and this year production has been estimated to be 2.75 lt, down from initial projections of 2.90 lt. The estimate, however, is a little higher than last year's 2.70 lt.

For the next season, the Coffee Board's post-blossom estimates have put the production at 2.94 lt.

However, planters and a section of the trade feel the crop could be lower in view of arabica being affected by the white stem borer menace and robustas suffering drop due to excess rains.

Asked about this, Mr Rau said there were reports from certain areas regarding abnormally high dropping of berries due to heavy rains, but this was not a general phenomenon.

"The feedback from our field officers suggest that the overall berry dropping is in the range of around 5 per cent which is not extra-ordinary," he said.

The United Planters' Association of Southern India President, Mr Anil K. Bhandari, and the Coffee Exporters Association of India President, Mr Ramesh Rajah, too, share the same view.

According to growers sources in Karnataka, regions such as Kodagu and Chickamagalur received heavy rains during monsoon and this has made the land soggy and resulted in the plant developing wet feet. As a result, they fear the production could be below 2.75 lt.

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