Coffee exporters were expecting the prices to cross the $2,000 a tonne on the upbeat sentiment but many made major losses as the prices crashed. A bumper crop throughout the globe has sent the prices tumbling, said an exporter. All the coffee producing countries have reported excellent crop which has created a glut in the international market.

The 1999-2000 estimates had put the world production at 62.67 lakh tonnes, of which 49.45 lakh tonnes of coffee are available for export. Though the coffee out put estimates for the harvest season just over are lower than the 1998-99 output at 64.12 lakh tonnes, the crop this year has improved.Moreover, the commodity available for export which was marginally higher than the last year has also increased because of the bumper harvest season which ended January this year.

The domestic production for 1999-2000 is estimated to be 282,000 tonnes against the last season's 265,000 tonnes. India, a minor player in coffee has shipped about 2.14 lakh tonnes of the commodity in the calender 1999 valued at Rs 1621.85 crore.

The domestic prices of coffee have been hit badly as a fall out of the international prices and the reeling prices of Rs 30-Rs 32 a kg had created quite a stir till the prices regained the upward momentum to reach Rs 36 a kg last week on a fovourable international price which improved by $50-60 also touching $1,000 per tonne in the futures.

The market pulse has started vibrating for coffee with a promise by Vietnam, one of the largest producer of robusta beans in the world, that it will not default on forward contracts despite getting raw deal on the futures prices.Vietnam has more than 1 lakh tonnes of coffee to be sold.

According to market watchers here, the Vietnamese exporters have been shying away from making shipments contracted earlier. Many were trying to renegotiate deals which were delaying the shipments. The buyers are buoyed by the step taken by the Vietnamese government declaring that there will be no going back on the contracts. This step must have come fearing a loss of market in future when there are other countries to provide the commodity, said market sources.

According to reports received by exporters, the major coffee producer Brazil is likely to retain a major chunk of the produce of the current season which will support the prices. London is going to host a meeting of the member countries of the Association of Coffee Producing Countries in the coming week which will take a decision on the producers' plan in the current situation.