New Delhi: Coffee exports this fiscal are expected to be 15% lower on account of sluggish global demand and increasing domestic consumption at coffee chains, said Jawaid Akhtar, chairman, Coffee Board. India exported 2.9 lakh tonne of coffee last fiscal, which is expected to fall to 2.4-2.5 lakh tonnes this fiscal. “In volume terms, the coffee exports will decline because higher domestic demand. Last year, we had seen very high export volumes,” Akhtar said.
Domestic coffee demand is growing at 6% annually while the production is rising slower at only 1%. Akhtar said the Coffee Board is exploring new markets in Japan and South Korea, besides greater focus on traditional markets like Italy, Germany, Russia and Belgium.
Coffee exports fetched R4,737 crore or $1.036 billion in the coffee year ending September 2011, of which 70% came from Europe. Countries in Europe are increasingly maintaining lower coffee stocks, which could impact exports.
Coffee is grown in four lakh hectares mostly in Karnataka, Andhra Pradesh and Tamil Nadu. To meet rising domestic demand, the Coffee Board is trying to bring 40,000 hectares of farm land in Andhra Pradesh and Orissa under coffee cultivation.
The Coffee Board will organise the fourth India International Coffee Festival during January 18-20 in New Delhi. Speaking at a function to announce the festival, commerce secretary Rahul Khullar said: “The industry must use better technology for manufacturing and growing coffee for expanding market abroad.”
Just like last fiscal, a bumper crop is expected this fiscal as well. According to Coffee Board's post-blossom estimates, the crop size is estimated at 3.22 lakh tonnes. Final estimates for 2010-11 crop was 3.02 lakh tonnes.
Arabica output is expected to touch 99,500 tonnes from 94,600 tonnes during the period while Robusta is likely to touch 2.08 lakh tonnes compared to 1.95 lakh tonnes a year ago.
Coffee output in Karnataka, which accounts for 70% of the country’s total production, is expected to rise to 2.19 lakh tonne compared with 2.05 lakh tonnes last year. India, the world's sixth-biggest coffee producer, accounts for only 4.5% of the total output. The country exports 70-80% of its produce.
Source : financialexpress.com