Healthy international prices, rising global consumption are expected to support the Indian coffee exporters to fight against stronger rupee in coming months, trade source said.
According to Coffee Board sources, the unit value of Indian coffee in the overseas market increased to Rs 85,721 per tonne during January to September 10 this year from Rs 76,592 in the corresponding period a year ago.
International Coffee Organisation (ICO) executive director Nestor Osorio, in his latest report released on Thursday, said, “The current growth in world consumption is a significant factor in supporting coffee prices”. World consumption in 2006 is estimated to be 120.27 million bags compared to 118 million bags in 2005. Preliminary estimates for 2007 indicate a total consumption of at least 122 million bags, Osorio noted.
The value of global coffee exports in 2006 is estimated to be around $11 billion for a total volume of 92 million bags compared to $9.25 billion for a total of 87.20 million bags exported in 2005. “If the current firmness in prices is maintained, the value of total exports in 2007 could show a substantial increase,” he said. However, Osorio said the weakness of the dollar seems to be reducing the impact of this increase on the real income of many coffee growers.
In fact, the unit price for Indian coffee at international market increased to Rs 87,403 per tonne in January to March in 2007 before declining to Rs 84,667 in April-June period, which is still up when compared to Rs 78,580 crore in the same period a year ago, Coffee Board sources added.