Weak rupee & strong robusta coffee may push exports

KOCHI: Coffee exports from India are expected to go up owing to a weak rupee and good output of robusta crop despite reports of excessive supply in the global market. Though harvest is in full swing, the arrivals are limited as the growers are holding the crop in anticipation of an increase in prices. The prices have gone below the cost of production, particularly in the case of arabica, as the wages and other expenses have increased, said a coffee auctioneer.

The 19% jump in coffee exports during January 1-February 19 over that a year ago to 44,115 tonnes, as per Coffee Board data, is mostly from carryover stock of the previous year, he said, requesting not to be named.

The arabica parchment variety is selling at about Rs 8,300 per 50 kg and the robusta parchment at about Rs 5,750 per 50 kg. The cost of production for arabica has risen to Rs 9,000 while that for robusta is around Rs 5,500, according to growers. Higher cost of production has put India at a disadvantage in the case of arabica in the global market. The price worries are less in the case of robusta as the growers are expecting a good output in the current season.

“I think the weak rupee will help Indian coffee exports and the market will pick up as the consumption is increasing the world over,” said MP Devaiah, general manager of Allanasons, a coffee exporting firm.