The sources told The Financial Express that the executive council of International Coffee Organisation (ICO) has unanimously decided to continue with the existing International Coffee Agreement for two more years. A resolution to this end was passed at a recent ICO meeting held in London.Though initially one of the major coffee producing countries, Brazil, had opposed the idea of continuing with ICA, it later favoured the resolution.Meanwhile, Coffee Futures Exchange of India Ltd (Cofei) officials said the coffee prices were yet to be stabilised as the threat of Brazilian frost still loomed large.

According to the Cofei sources, the coffee prices on the New York Exchange had managed to maintain their levels though the uncertainty on Brazilian frost still prevailed. The frost prone period extends till mid- August.Coffee prices were hoveringbetween 93-94 cents per pound on the New York Stock Exchange and major coffee origins were selling their produce at much lower prices due to over- supply in the international coffee market, the Coffee Board sources said.

On August 4, under the September contract, the Arabica variety was traded on New York Exchange at 93.75 cents per pound as against the previous day's closing of 93.40 cents. While on London Exchange, Robusta was traded at $1343 per tonne as against the previous day's closing at $1315.

On August 6, Cofei traded Plantation A variety for September contract at Rs 78.65 a kilo while Robusta was traded at Rs 57.00 as against Rs 78.40 and Rs 57.40 in the previous day respectively.

According to Coffee Board sources, this year, world coffee production was estimated to touch 2,85,000 million bags as against an estimated consumption of 2,80,000 million bags thus generating a surplus.

On the Indian coffee crop that was due for harvest during November and December, the sources said.

The domesticgrowers were said to have suffered losses due to incessant rainfall. However, the amount of losses was yet to be assessed, the sources added.

The Coffee Board would conduct a final coffee yield estimation in September. In a year, the Coffee Board conducts four yield estimations during pre-blossom, blossom, post-blossom and a final estimation in September.