Despite scorching prices and lower output, coffee exports from India witnessed a growth of 3% in the first six months of the current calendar year.
According to statistics available with the state-owned Coffee Board, exports surged to 1,32,846 tonne in January-June 2008 from 1,28,898 tonne in the same period a year ago. Setting a new record, export price of Indian coffee touched Rs 1,05,454 per tonne in the first half of 2008, up from Rs 84,521 per tonne in the same period a year ago.
In fact, the monthly average of International Coffee Organisation (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 maintained at the same level throughout May and the first two weeks of June. But again the prices started moving up in the third week of June touching 141.39 cents per lb on June 30. In addtion to higher prices, coffee production for the season 2007-08 stood at lower levels at 2,62,000 tonne in India. Despite these negative parameters, exports picked up this year mainly because of firm demand for the commodity at international market while rupee losing its strength against the dollar, trade experts said.
With the Coffee Board releasing positive post-blossom outlook for the forthcoming season, trade sources said exports will jump in the remaining six months of 2008.
