The Indian coffee segment seems to be immune to the global financial meltdown as foreign exchange through annual coffee exports is likely to touch Rs 2,400 crore for the first time in 2008, trade sources said. According to statistics available with state-owned Coffee Board, exports during the January – December 24 period in 2008 touched Rs 2,396 crore ($ 572.02 million), posting an increase of 26% from Rs 1,897 crore ($ 458.89 million) reported in the same period a year ago.
The volume of coffee exports remained almost flat while value increased significantly. The country exported 2,18,206 tonne of coffee against 2,17,840 tonnes during the same period. The weakening rupee, higher prices at international markets and increasing demand for Indian coffee are major reasons for the increase in foreign exchange through coffee exports this year, an official attached to Coffee Board said on anonymity. The average unit value of Indian coffee at overseas markets this year climbed to Rs 1,09,821 per tonne from Rs 87,083 a tonne seen last year.
According to the composite indicator of the International Coffee Organisation (ICO), average coffee prices at international markets stood at 107.68 cents per pound in 2007 with the lowest monthly average price at 99.30 cents per pound in April 2007 and a higher band at 118.16 cents per pound in December 2007. But 2008 started with a bright note as the average price in January moved up to 122.33 cents and further climbed up to 138.82 cents in February but began to decline since October. It is expected that the yearly average price for 2008 would be in the range of 124 cents per pound.