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In the first half of current financial year, coffee exports are up by a fourth in volume and a third in dollar value on pent up demand from Europe, the major destination for Indian beans.
Volumes grew 25 per cent to 2.03 lakh tonnes in the April-September period this year compared with 1.62 lakh tonnes in the same period last year.
In dollar terms, shipments were valued at $487.27 million compared with $366.20 million, up 33 per cent. In rupee terms, exports were up 31 per cent at ₹3,599 crore compared with ₹2,753 crore in the same period last year, according to Coffee Board’s latest data.
The unit value realisation was higher by 4.4 per cent at ₹1.77 lakh a tonne compared with ₹1.69 lakh.
Ramesh Rajah, President, The Coffee Exporters Association, said the growth is on last year's low base and that the pending shipments are happening now.
Higher freight rates dent profit
However, Rajah said that exporters' net realisations have been hit due to the higher freight and exorbitant container rates.
"As the upcoming crop is good, the momentum in exports could be maintained for the rest of the year," Rajah added.
Bottlenecks removal boost exports
K G Jagadeesha, CEO and Secretary, Coffee Board, attributed the good growth in exports to a combination of factors such as higher crop last year and various measures initiated by the Commerce Ministry and the Board to remove bottlenecks, expedite shipments and promote the Indian coffees.
Further, the aggressive stance of the exporters in tapping new markets and executing trade also contributed to the robust shipments, Jagadeesha said.
The Board has facilitated some ten buyer-seller meets in this calendar year to promote the Indian coffees, Jagadeesha said.
For the coffee year 2020-21 ended September, exports were up 13 per cent in volumes at 3.51 lakh tonnes compared with 3.11 lakh tonnes in the previous year. The value of the shipments rose by 21 per cent to $856 million ($705 million). In rupee, shipments’ value stood at ₹6,298 crore ( ₹5,194 crore).
For the financial year ended March 2021, coffee exports stood at 3.10 lakh tonnes valued at $735 million.
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