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Coffee exports witness steady growth
Coffee exports in the first eight months of the current calendar year posted 13% year-on-year growth. The main volume growth comes from Arabica parchment and Robusta cherry. According to the latest figures available with the Indian Coffee Board, shipment confirmed for exports till date in the current calendar year (January 1 to September 12) stood at 1.44 lakh tonne, 13% increase from 1.27 lakh tonne in the same period last year.
The volume of shipment is expected to surge further in the coming months as the board has already issued permits for 1.65 lakh tonne till date, up 27% from 1.31 lakh tonne a year ago.
Till date, the shipment confirmed for Arabica parchment increased by 35% to whopping 41,378 tonne from 30,792 tonne a year ago while for Arabica cherry it marginally increased by 13% to 8,350 tonne from 7,359 tonne. Shipment confirmed for Robusta cherry also surged to 66,117 tonne from 59,050 tonne a year ago but for Robusta parchment it marginally increased to 16,849 tonne from 14,634 tonne.
Although the board cleared a huge amount of permits, the planters fear over the coffee output this season following crop damage due to uneven rains in Karnataka's coffee belt during the current monsoon. Although the post blossom forecast by the board for 2006-07 stood at 3,00,300 tonne, up from 2,74, 000 tonne a year ago, the planters said that the output may decrease by 15-20% due to various problems including uneven rains and white stem borer disease.
Currently, prices of Arabica parchment ruling between Rs 3,950 to Rs 4,250 per 50 kg bag while Arabica cherry traded at around Rs 1,800 and Robusta parchment at Rs 2,875 to Rs 2,925 followed by Robusta cherry at Rs 1,500.
However, the analysts are keen on watching the crop condition in Brazil, where trees should begin flowering next week and blossoming will continue into November. Trees require more moisture to blossom normally, and have had some recent showers but need more.
The success of Brazil's blossom will help determine price direction in coming months, experts said.
www.financialexpress.com
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