Comments
For the first time in the history of Indian coffee trading, prices of Robusta Parchment is selling on par with Arabica Plantation.
According to auctioneer J Thomas & Company, at the Indian Coffee Trade Association (ICTA) auction, due to continuous fall of Arabica coffee prices, Arabica Plantation and Arabica Cherry coffees got very little support from all sections of trade.
Robusta Parchment continued to receive strong support from the exporters where as Robusta Cherry received good enquiry from the domestic trade.
Arabica Plantation PB grade got sold at last week's level of Rs 10,595 for 50-kg bag, A grade was lower by Rs 100 when compared to last sale (Arabica Plantation PB and A grade sold at the auctions were from the Chickmagalur region), B grade remained unsold as sellers price expectation were higher than the buyers interest, C grade received enquiry at current price levels. Arabica Cherry PB and AB grade remained unsold, C grade sold at price similar to last levels.
Robusta Parchment coffee price were higher by Rs 150 to Rs 350 for 50-kg bag when compared to last week.
Robusta Cherry coffee price were lower by Rs 100 to Rs 200.
Arabica Plantation AB coffee from North East Region on offer by Coffee Board got sold at Rs 8,850 for 50-kg bag, Arabica Cherry A traded between Rs 8,110 and Rs 8,305; Arabica Cherry B Rs 7,850 -7,860 . Robusta Cherry BBB price were lower by Rs 100 .
Shortage pushes up prices
With robusta creating a record at the ICTA auctions today, growers attribute this change in pattern to a severe shortage of good washed Robustas in the Indian market.
“International price for Arabica is reflecting in the domestic market and due to shortage of Robusta Parchment in the domestic market exporters are forced to buy at higher prices to full fill their export commitment,” according to Mr Sahadev Balakrishna, partner Netraconda Estates, Chikmagalur.
Over production of Arabica coffees in Brazil and other Arabica growing countries has led to prices coming down drastically on the New York market for Arabica coffees.
The prices of Arabica have come down by 60 per cent from $2.70 per pound trading a year ago to current trading levels of $1.15 per poundWhereas, Robusta coffees on the London's LIFFE market has been steady at $2,100 a tonne. Mr Nishant Gurjer, Managing Partner, Sethuraman Estates and Kaapi Royale Coffee, said “India's washed Robusta command a premium of $1,500/tonne in the international market. This works out to $1.5 per pound equal to Arabica coffee.”
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.