India's coffee exports may dip by 14% to about 190,000 tonnes in the calendar year 2009, as output in the country's largest producing state Karnataka is projected to decline due to erratic monsoon. The state accounts for more than 70% of coffee production in the country. "We expect the coffee export to come down to about 180,000-190,000 tonnes in 2009 as production is likely to dip between 250,000 and 260,000 tonnes this year," according to Ramesh Rajah, president, All India Coffee Exporters Association. India exported 220,000 tonnes of coffee in 2008, he said.
On top of a projected lower production, farmers were holding back coffee stocks in anticipation that they might get better remunerative prices for their produce later, Rajah said. Low crops and low arrivals are denting the export prospects "Moreover, the economic slowdown in major economies across the globe has also led to lower demand for coffee, though no shipment contract was cancelled," Rajah said. Contracts for exports to some countries, especially in Eastern Europe, had been delayed due to recession, but no contact had been cancelled, he said.
Indian coffee failed to find favour with overseas buyers in January this year, with exports declining 15% to 10,810 tonnes on poor demand for instant coffee and value-added products, due to the recession.
Source : fnbnews.com