Tuesday 18 January 2022

Indian coffee exports may fall as much as 20 percent in current year

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KOCHI, India – Indian coffee exports are likely to fall 15-20% in the current year as exporters haven’t got enough orders for the coming months.

As per Coffee Board’s export data for the period from January 1 to July 17, 2017, the total export volumes were at 216,926 tonnes – a marginal drop compared to same period last year.

“But in the coming months, the drop will widen,” said Ramesh Rajah, president of the Coffee Exporters Association of India

“Towards the end of last year, we had taken fewer orders as growers had estimated a 30% drop. But in the end it was down by only 10%. Whatever orders we had have been shipped. Now it is difficult to find buyers as they have bought from other origins,” Rajah said.

The Coffee Board’s total coffee production estimate for 2016-17 was 316,700 tonnes with 220,500 tonnes of Robusta and 96,200 tonnes of Arabica.

“Arrivals decreased in the market as growers expected better prices. Though prices are up now, buying has slackened,” said MP Deviah, general manager of Allansons, a major exporter.

Exporters are pinning their hopes on next year’s crop, which again is likely to fall short because of inadequate rains in the coffee-growing regions of Karnataka and Kerala.

While growers had predicted a steep drop in Arabica last year, they feel Robusta, which accounts for nearly 70% of the total coffee output in the country, will be hit in the next crop.

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