India's Coffee Export to Supersede Last Year's.

India’s coffee export in the 2010-11 crop year is expected to be more than last years’ 2.7 lakh tonnes, although appreciation of rupee against dollar poses a challenge, according to a US department of agriculture (USDA) report.

In its report on coffee production, USDA said that boosted by the increase in production of coffee, India’s export of the beverage bean was expected to be more than 2009-10 crop year. Crop year runs from October to September. India exported 2.7 lakh tonnes of coffee in the last crop year.

“Considering the larger size of the crop year 2010-11, coffee exports are forecast to match or even exceed 2009-10 exports,” the USDA report said. The report, however, noted that appreciation of rupee against dollar is also a challenge, as it would make exports less competitive and there are some quality issues in certain markets.

“Recent appreciation of the Indian rupee against the US dollar is making exports less competitive and could pose a challenge to exporters if the situation persists,” the report said. Besides this, quality issues sometimes hamper Indian coffee exports to quality conscious markets such as Japan and Italy, it added.

The report said that production of coffee during the current crop year was expected to rise by 6.4% to 3.08 lakh tonnes and it will also help in boosting exports.

Good and well-distributed rainfall during October 2009 to March 2010 and excellent blossom backed by showers, supported higher production in the major growing regions of Karnataka and Kerala. Moreover, continued high and stable prices encouraged better crop husbandry practices by plantation owners contributing to higher production.

Source : fnbnews.com