India’s coffee exports have shown a robust growth of 20% during the first five months of 2016 on the back of higher Robusta shipments. The country’s bean exports stood at 171,766 metric tons between January and May this year compared to 143,386 metric tons in the same period last year.
Higher domestic output during the coffee year (October-September) and the need for liquidity among growers is seen as major reasons for jump in exports during this period. The demand of instant coffee from India has added to the rise in exports, analysts said. Of the total exports during this period, Robusta beans accounted for 55% or 94,900 metric tons.
“We have seen higher growth in exports during the first five months as farmers are not in a position to hold on to their crops for long. They need money to invest for the next crop as the cost of inputs like fertilisers and labour charges have gone up. Despite lower prices for Robusta in international markets, we had to rush our produce,” Ramesh Rajah, President, Coffee Exporters’ Association told FE.
However, he said exports will taper off during the second half of the year as there will not be much stocks left with the growers.