Indian coffee exports in the first six months of the current financial declined by 21% year-on-year on rising rupee, a Coffee Board official said. However the coffee exporters are trying to offset the losses incurring due to the appreciation of rupee with the help of rising coffee prices at international market, trade sources said.
Talking to FE on conditions of anonymity, the board official said that India exported 1,08,808 tonne of coffee in the first half of the current financial year, down from 1,36,966 tonne exported in the same period last financial year.
However the unit value of the commodity surged by 17% to Rs 88, 451 per tonne from Rs 75, 473 a year ago when the country witnessed lower exports in the period. With appreciable increase in the unit value (due to price jump in international markets), exporters could record higher revenue in terms of dollar value but it declined when it was converted to rupee, the official added.
Despite decline in exports the exporters’ revenue increased by 2% to $229.55 million from $225.76 million in dollar terms, but the revenue tumbled by 7% to Rs 962.42 crore from Rs 1,033.73 crore in Rupee terms, for the same period.
A major set back in exports was due to decline in Arabica parchment, trade sources said. The Arabica parchment exports alone declined by 39% to 26, 965 tonne in the first nine months of 2007 from 44, 363 tonne exported in the same period a year ago.
With Arabica harvests set to start in November, trade sources said that the exports are expected to improve in the fourth quarter of the current financial year, but with the stronger rupee, the market sentiments are dull.