Commodities

Coffee exports hit by low prices in 2019; shipments down 5% at $794 mn

Vishwanath Kulkarni Bengaluru | Updated on January 02, 2020 Published on January 02, 2020

India’s coffee shipments for the calendar year 2019 fell 5 per cent in value due to lower prices, despite a marginal increase in overall volumes.

In dollar value, shipments declined to $794.21 million during 2019, lower than previous year’s $836.14 million. Also, the exports were marginally lower in domestic currency at Rs 5583.64 crore, as against Rs 5661.37 crore, according to the state-run Coffee Board’s latest provisional data.

Total volumes saw a marginal growth at 3.505 lakh tonnes during 2019 as against 3.488 lakh tonnes in the previous year. The increase in volumes was primarily on account of higher re-exports. The Indian companies import cheaper coffee beans from countries such as Vietnam to convert them into value-added products such as instant coffees and re-export them to destinations such as Russia and East Europe. The re-exported coffee during 2019 was higher at 89,193 tonnes (87,260 tonnes in the previous year). The exports of Indian grown coffees during 2019 was down marginally at 2.613 lakh tonnes (2.615 lakh tonnes).

Despite a marginal increase in volumes, the value of shipments dropped on account of lower per unit realisations. The per unit value fell to Rs 1,59,301 per tonne, as against the previous year’s Rs 1,62,296.

Italy was the largest buyer of Indian coffee, mainly the raw beans with volumes at 72,265 tonnes. Italy accounted for a fifth of India’s total coffee volumes during 2019.

Germany was the second largest buyer, followed by the Russian Federation. Germany bought 37,175 tonnes and accounted for over a tenth of India’s total shipments. The Russian Federation was the largest buyer of instant coffee at 28,573 tonnes.

CCL Products India Ltd was the largest exporter, followed by Tata Coffee Ltd and NKG India Pvt Ltd.

Published on January 02, 2020
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