India coffee exports at 5.5 mn bags in FY13, down 5%: USDA.

India's coffee exports are likely to fall by 5% in 2012-13 marketing year, but shipments would cross 5 million bags for the third consecutive year on the back of a weak rupee and high global prices, United States Department of Agriculture (USDA) has said.

According to the latest USDA report, shipments of the brew from India are pegged to fall by 5% to 5.51 million bags (3.30 lakh tonnes) in the 2012-13 marketing year from an estimated 5.82 million bags of 60 kg each (3.49 lakh tonnes) in the current marketing year (October-September).

"Helped by higher world prices, a weaker rupee and programmes designed to facilitate exports, India's coffee exports are expected to exceed 5 million 60 kg bags for the third-consecutive year in 2012-13," it added.

Assuming international prices remain high, marketing year 2012-13 exports are forecast 5.5 million, as strong global prices are expected to prompt foreign buyers to again seek Indian coffee as they pursue more varied supply options, USDA noted.

The US farm body has pegged shipments of the brew to fall marginally in the current marketing year as compared to the previous year.

India's coffee exports are expected to decline by 1% to 5.82 million bags in the current marketing year from 5.87 million bags in the 2010-11 marketing year.

USDA has forecast that production in India is expected to fall marginally to 5.1 million bags (3.06 lakh tonnes) in the next marketing year from an estimated 5.3 million bags (3.18 lakh tonnes) in the 2011-12 marketing year.

"Both Arabica and Robusta production are forecast slightly lower under the assumption that weather conditions will be normal or average," it added.

For the current marketing year, coffee production is estimated at 5.3 million bags as the crop benefited from well-distributed rains during much of the growing season in addition to pre-season rains that helped establish early growth and support soil moisture levels, USDA said.

In the main producing state of Karnataka, good weather and high prices encouraged producers to improve their plant husbandry practices. Weather conditions in the states of Kerala and Tamil Nadu were similarly favorable, it noted.

Source : smartinvestor.business-standard.com