Coffee exports remain flat in 2019

India’s coffee exports for the calendar year 2019 have remained flat at 350,508 tonnes compared with 348,828 tonnes during the previous year.

However, in value terms, the exporters have witnessed 1.36% decline at Rs 5,584 crore compared with Rs 5,661 crore in the previous year. In dollar terms, the value has declined by 5% at $794 million compared with $836 million earned in 2018, according to the data available with the Coffee Board of India.

The unit value of bean exports during the year stood lower at Rs 1,59,301 per tonne during 2019 compared with Rs 1,62,297 per tonne in 2018.

During 2019, the Coffee Board issued permits for the export of 261,315 tonnes of Indian origin coffee compared to 261,568 tonnes in the previous year. The marginal rise in total exports was largely on account of re-exports. The board permitted re-export of 89,193 tonnes of coffee between January and December 2019 compared with 87,260 tonnes during the same period in 2018.

The exports include 47,348 tonnes of Arabica, 186,360 tonnes of Robusta varieties. The country also exported 116,524 tonnes of instant coffee, 275 tonnes of roasted coffee (including roasted seeds) during the year.

“The decline in unit value realisation was largely on account of a sharp drop in international prices as coffee is traded in dollar terms globally. The rupee depreciation against the dollar, however, did not help Indian farmers much due to the falling prices globally,” Ramesh Rajah, President, Coffee Exporters Association told DH.

The exporters had lesser quantities to export during the year owing to a short crop which was largely due to bad weather conditions. The crop declined due to bad weather in 2018 in the major growing regions.

The situation is likely to continue in 2020 as well due to poor crop in 2019.

The exporters are keenly awaiting the new crop in Brazil later this year, which will set the tone for prices during the second half of 2020, Rajah added.