Coffee prices in India climbed by 3-5% on the back of increasing export demand. The sudden spurt in exports was due to rupee depreciation in recent times forcing the exporters to buy stocks in the spot market to book more profits, trade sources said.
All varieties, Arabica Cherry in particular, realised premium prices at the Indian Coffee Trade Auction (ICTA) on Thursday at Coffee Board in Bangalore, sources in auctioneer J Thomas&Company said.
Arabica Plantation variety ruled at Rs 125-129 per kg, up by Rs 3-5 compared to prices in the last week?s auction. Arabica Cherry witnessed an increase of Rs 6-7 at Rs 113 per kg. Robusta Parchment and Robusta Cherry were also sold at Rs 120-125 per kg and Rs 91-95 per kg respectively.
ICTA member, who requested anonymity, said the downward rally of rupee has increased the export value, hence the exporters are interested in buying the commodity since May first week. The prices have started increasing as the arrivals also declined in the market on regular seasonal pattern, the member said. Arabica harvest starts in December and continues through February while Robusta starts from January to April.
According to statistics available with the state-owned Coffee Board, the coffee exports increased to 28,598 tonne during April to May 13 from 27,252 tonne in the same period a year ago while foreign exchange through exports also increased to $72.70 million from $52.73 million.
In fact the prices were all-time high during February and tumbled in the first week of April. Again in a month’s time the prices have recovered in India on the lines of upward in the international market.
The monthly average of International Coffee Organsiation (ICO) composite indicator price increased to 138.82 cents per lb in February from 122.22 per lb in January. But the ICO indicator price tumbled to 126.55 cent per lb in April and again started moving up in the first week of May touching 128.24 cents per lb on May 13.