BANGALORE: The global economic slowdown has pulled down India's coffee exports by 21% in January-June 2009 compared to the first six months of the last calendar year.
Coffee Board data indicates that the country managed to export only 1.04 lakh tonnes in Jan-June 2009 against 1.32 lakh tonne.
In dollar terms, India's coffee exports was $227 million in CY2009 compared to $347 million in the same period in 2008, a fall of 35%. Due to currency fluctuations, the value of exports in rupee terms was Rs 1,122.46 crore (Rs 1,392.47 crore).
The rupee depreciated 8.67% during Jan-June 2008 against the dollar while in the current year it has appreciated by 2.52%.
Exports of instant coffee (to key markets like Russia and East Europe) was 23,578 tonnes in the Jan-June 2009 period compared to 32,626 tonnes during the same period in CY2008.
"We are experiencing the full impact of the global economic slowdown. What makes matters worse is that this year rains have played truant. This will hit India's coffee exports during the next coffee year also," said Mr Ramesh Rajah, president of Coffee Exporters Association of India.
Due to erratic monsoons, growers are expecting a 10% to 15% drop in coffee output this year. The Coffee Board has estimated the post-blossom coffee output at 3.06 lakh tonnes for coffee year 2009-2010.
For the ongoing coffee year (October to September), exports were down 21% at 1.4 lakh tonnes compared to 1.77 lakh tonnes for the same period in 2008. Dollar term realisation was $ 319 million($ 452 million). Average realisation in rupee terms in the ongoing coffee year was Rs 1.1 lakh per tonne against Rs 1.02 lakh per tonne.
Source : The Economic Times