Agri Business

Poor prices, weak demand hit Q1 coffee shipments

Vishwanath Kulkarni Bengaluru | Updated on July 02, 2019

The prices continue to hover around 13-year low on excess supplies and higher output among large producing nations

Low prices coupled with weak demand from key buyers in Europe have impacted India's coffee exports for the April-June quarter this year.

Provisional numbers released by the state-run Coffee Board reveal that volume shipments for June quarter were lower by around 6 per cent at 1.023 lakh tonnes as against 1.084 lakh tonnes in the corresponding quarter last fiscal.

In US dollar terms, the value dropped 16 per cent to $227 million as compared to $270 million in June quarter last fiscal. In rupee terms, the exports fell 12 per cent to ₹1,579 crore from corresponding last quarter's ₹1,806 crore.

Excess supplies

The per unit realisation also declined by around seven per cent during the quarter on slump in global prices. On an average, Indian exporters realised about ₹1.54 lakh per tonne during the June quarter as against ₹1.66 lakh in the corresponding previous quarter. Global coffee prices continue to hover at around 13-year low on excess supplies with higher output in large producers such as Brazil,Vietnam and Colombia.

Output estimates

The Board has pegged India's output for the current crop year 2018-19 (September-October) at 3.19 lakh tonnes, marginally higher than the previous year's 3.16 lakh tonnes. India is the seventh largest coffee producer and exports about two-thirds of its produce.

In the first six months of the calendar 2019, the shipments in volumes were marginally down at 2.11 lakh tonnes as against 2.12 lakh tonnes in the corresponding period last year. In dollar value, the exports were lower by about 8 per cent during Jan-June period at $481 million ($522 million in Jan-June 2018). Similarly, in rupee value terms the exports declined by two per cent to ₹3,368 crore ( ₹3,436 crore). Italy, Germany and Russian Federation were the top three buyers of Indian coffee in calendar 2019 so far.

Published on July 02, 2019

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like