Strong brew. Coffee exporters see improving demand, shipments up 14% in January-August

Coffee exports the first eight months of calendar 2021 have risen 14 per cent on improving demand for Indian instant coffee, arabica parchment and robusta cherry varieties. The shipments in volumes rose to 2.56 lakh tonnes during the January 1 to August 31 period as compared to 2.25 lakh tonnes in the same period last year.

In dollar value terms, the shipments rose 19 per cent during the period at $607 million as compared to $511 million. In rupee terms, the exports topped ₹4,467 crore, an increase of 17 per cent over same period previous year’s ₹3,801 crore.

The Indian instant coffees saw a 78 per cent jump in volumes during the period at 16,029 tonnes, but the premium variety Robusta parchment has taken a beating. The imports of coffees for re-exports as value added produce were up 12 per cent at 62,895 tonnes.

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“The growth figure is a bit misleading as it is on a low base, because last year was bad. Even then by notional standards, it is a good growth,” said Ramesh Rajah, President, Coffee Exporters Association. “There’s some improved demand but the premiums are low and the freight rates have shot up, resulting in lower realisations for the farmers,” Rajah said.

European market

The freight rates to Europe, the main market for Indian coffees, are up by over 300 per cent, he added. Last year, the spread of Covid and the lockdowns in Europe had hit the Indian coffee shipments.

For calendar 2021, the exporters were targetting a 10 per cent growth over last year’s 3.06 lakh tonnes. “We will reach last year’s figures, but a growth of 10 per cent is unlikely to be achieved as there could be a slowdown next quarter as there’s not much coffee is left and high freight could deter shipments. The first quarter next year should be good,” Rajah said.

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Robusta parchment is doing badly as the shipments are down 12 per cent at 20,002 tonnes. Arabica parchment shipments were up 22 per cent at 32,205 tonnes, while the Arabica cherry volumes were down 4 per cent at 8,796 tonnes. Robusta cherry volumes grew 13.5 per cent during the period at 1.16 lakh tonnes.

Despite dip in premiums, the per unit realisation of the exporters was up by around 3.5 per cent at ₹1,74,257 per tonne as compared to ₹1,68,390 per tonne in the same period last year.

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