'Coffee exports likely to fall by 20%'
Exports in the first four months of coffee year (October- January) have already fallen by 7.79 per cent at 59,443 tons against 64,467 tons in the same period last year.
By PTI |
BANGALORE: The country's coffee exports are likely to decline by 20 per cent in the current coffee year (October 2007 to September 2008) due to a slew of reasons, including a robust rupee, an industry body said on Wednesday.
"We see a drop of 20 per cent in coffee exports during 2007-08 coffee year that ends in September. Exports would witness a dent due to appreciation of rupee and fall in the domestic production," Coffee Exporters Association President Ramesh Rajah told reporters.
Exports in the first four months of coffee year (October- January) have already fallen by 7.79 per cent at 59,443 tons against 64,467 tons in the same period last year.
"A stronger rupee is turning to be a bane to growers as they are getting 10 per cent less for their produce in the market. As a result, they are holding their stocks," Rajah said.
Besides, the Coffee Board has lowered its crop forecast for the current year to 2,62,000 tons from an earlier estimate of 2,91,000 tonnes, he said.
According to Rajah, coffee production may come down to even below the government's target at 2,60,000 tonnes because the crop has been affected by the unusual heavy rains during last August.
The Russian ban on India's imports may also have some impact on coffee exports, especially instant coffee. The ban may upset the market, he added.
India produces only 4.5 per cent of the world's coffee, but exports 70-80 per cent of its production.
"We see a drop of 20 per cent in coffee exports during 2007-08 coffee year that ends in September. Exports would witness a dent due to appreciation of rupee and fall in the domestic production," Coffee Exporters Association President Ramesh Rajah told reporters.
Exports in the first four months of coffee year (October- January) have already fallen by 7.79 per cent at 59,443 tons against 64,467 tons in the same period last year.
"A stronger rupee is turning to be a bane to growers as they are getting 10 per cent less for their produce in the market. As a result, they are holding their stocks," Rajah said.
Besides, the Coffee Board has lowered its crop forecast for the current year to 2,62,000 tons from an earlier estimate of 2,91,000 tonnes, he said.
According to Rajah, coffee production may come down to even below the government's target at 2,60,000 tonnes because the crop has been affected by the unusual heavy rains during last August.
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The Russian ban on India's imports may also have some impact on coffee exports, especially instant coffee. The ban may upset the market, he added.
India produces only 4.5 per cent of the world's coffee, but exports 70-80 per cent of its production.
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