Indian robusta bean prices are expected to decline in the next couple of months as a bigger crop output is expected this season from the coffee fields of Vietnam, the world?s largest robusta producer.
Talking to FE, Indian Coffee Exporters Association (ICEA) president Ramesh Raja said robusta prices surged to $1,920 per tonne six weeks ago following tight supply on the back of lower crop output in Vietnam and Indonesia during the last coffee season. Currently, the prices have declined to $1,770 per tonne on the back of easing global supplies, but still the prices are higher when compared to $1,650 levels in the same period a year ago.
The current price fall was due to clearance of carryover stocks in warehouses in Vietnam and Indonesia following positive forecast on harvest in Vietnam starting from November, he said.
In the domestic market, he said the traders and planters are hoarding stocks close to 60,000 tonne, of which robusta alone accounts for 40,000 tonne. Now, the Indian robusta stocks have also started coming into the market in huge quantities. However, traders are hoarding Arabica as they are keeping a watch on October rains that would decide the crop size in Brazil during next season.
The coffee auction conducted in the Indian Coffee Trade Association (ICTA) on Thursday witnessed moderate arrivals and sales compared to last week.
According to ICTA sources, auctioneers J Thomas brought 72,139 kg of robusta and 43,070 kg of arabica, while Carritt Moran placed 47,906 kg of robusta and 42,912 kg of arabica for auction. Another auctioneer Forbes Ewart and Figgis placed 19,031 kg of robusta and 5,194 kg of arabica.