India's coffee exports may dip 17%

India, Asia’s biggest coffee exporter, is estimated to make overseas shipment of 2,88,600 tonnes in the ongoing 2010-11 coffee year, ending September, it said.

“Exports are expected to decline to 4 million 60-kg bags (2,40,000 tonnes) in 2011-12, given tight carry-in stocks and lower production,” the US Department of Agriculture (USDA) said in its Coffee Annual Report.

The country’s total coffee output may drop slightly to 2,88,600 tonnes in 2011-12, as against 3,05,000 tonnes in the last season. Even carry-over stocks are forecast at just 1,080 tonnes, it said. Coffee pests such as the white stem borer and berry borer continue to affect coffee yields, it noted.

According to the USDA, coffee exports may dip from the current year’s record level due to lower international coffee prices, which could reduce importers’ demand for Indian coffee.

“However, if international demand remains strong, exports could increase at the expense of domestic consumption,” it said. While the spread of cafes is helping to introduce a new generation of Indians to premium coffee products, strong exports have resulted in reduced domestic consumption levels, it observed.

In the current season, strong global prices have prompted foreign buyers to increase their purchases of Indian coffee as they look for new supply options, the report said. Indian Robusta has a good reputation among international buyers. Europe continues to be the major destination for Indian coffee, it added.