Coffee exports in 2010-11 crop year that ended on September 30 increased 81 per cent in dollar terms to cross a billion. The growth was driven by high prices in a weakening global economic environment.

It is for the first time that coffee exports have breached the billion-dollar-mark in any crop year or financial year or calendar year. The previous high was $798.78 million in financial year 2010-11.

In dollar terms, the exports of coffee for the period October-September 2010-11 grew to $1.046 billion against $577 million in the previous year.

In Rupee value terms, exports were up 74 per cent to Rs 4,788 crore against Rs 2,753 crore.

In volumes terms, coffee exports were up 33.2 per cent to 3.57 lakh tonnes (lt) against 2.68 lt in the previous year.

Europe crisis

However, exporters are in no mood to celebrate the past performance. This is because bleak prospects stare at them in view of the financial crisis worsening in Europe, their main market.

“The situation in Europe is worrying,” said Mr Ramesh Rajah, President of the Coffee Exporters Association. Exporters fear a potential payment crisis on the talk of credit squeeze in Italy, their largest market.

Europe accounts for about 70 per cent of India's coffee exports. Germany and the Russian Federation are the other two large markets.

Mr Rajah attributed the record export performance to a large crop last coffee year and high prices in the January to June period of current calendar year.

Also, the incentives such as DEPB helped to boost exports, he added. Prices in the January-June period were up by almost a fourth over the previous period.

In the current financial year, exports from April till September 29 grew 69 per cent to Rs 2,602 crore from Rs 1,537 crore in the corresponding last year.

In dollar terms, the growth was 76 per cent to $577 million from $327 million.

In volumes, the exports for the first six months of current fiscal grew by a fourth to 1.91 (lt) from 1.53 (lt) in the previous year.

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