The country’s coffee exports fell marginally in volume during the first half of the current financial year on reduced off-take of green beans.

But shipments value increased. Exporters said the outlook for the remaining year would depend on the crop size, which is seen influenced by erratic weather pattern.

Based on the provisional data issued by the Coffee Board,exports in volume terms were down by 8 per cent to 1,92,596 tonnes during April-September of the current financial year compared with 2,09,818 tonnes in the same period last year. In dollar terms, exports were up by 2.9 per cent at $605 million ($588 million).

However, the growth in rupee value terms was higher at 8.3 per cent at ₹4,991 crore (₹4,608 crore) aided by a weaker currency.

Also read: Nafed’s move to sell procured copra irks coconut oil traders 

Weaker economic conditions in parts of European Union, the largest buyer of Indian coffee, impacted the shipments of green beans as a section of buyers resorted to value buying shifting their preference to the instant coffees.

“The availability of arabicas was also an issue during the season as growers and the trade in the interior parts of the growing regions held back the coffees, which is now coming into the market,” said Ramesh Rajah, President of the Coffee Exporters Association. Also the order books were not strong for the green beans during the year. “Hopefully, the second half looks better, but it would all depend on the size of the upcoming crop,” Rajah said.

“Currently, the order books are not looking very healthy as everyone is waiting to see the new crop,” Rajah said. Most of the orders get booked during October-November and it is early days yet. While the orders for Arabicas look muted, there are some orders for Robustas, Rajah said.

Weather concerns

The uncertain weather is seen as a major concern for the new crop for 2023-24 as key-producing regions in Karnataka witnessed unusual rainfall pattern during the monsoon season.

After a bad blossom showers, the dry spell during August is seen weighing on the development of beans.

“Key growing regions witnessed a rainfall deficit of upto 50 per cent during the monsoon. Though rains are happening now, which is boon for us. We don’t need the rains beyond October 20. We need a break from rains in November for the crop to ripen better,” said KG Jagadeesha, CEO and Secretary of the Coffee Board.

The crop is likely to be lower than last year, but too early to quantify, he said. In its post-blossom or early estimates, the Coffee Board had pegged the 2023-24 crop size at 3.74 lakh tonnes — higher than previous year’s final estimates of 3.52 lakh tonnes.

Also read: Sugar mills keen on 100% mechanical harvesting

Further, Jagadeesha said the prices are expected to hold firm and we may cross the last year’s export levels in value terms, provided the crop standing on the plants is realised by the end of the year.

India, which produces around 3.5 lakh tonnes of coffee, exports over two-thirds of its produce. European Union accounts for about 57 per cent of the shipments.

Related Topics