India's coffee exports are set to decline by 10% in the marketing year ending September 30. This is mainly on lower production of the arabica variety due to the stem borer pest attack and dry weather condition prompted the Indian growers to demand for higher prices for both arabica and robusta varieties, erodes foreign competitiveness.
Lower shipments by India, the world's sixth-biggest coffee producer, could further stiffen global prices of arabica, which jumped 50% in 2014.
In the 2013-14 marketing year, India exported 303,290 tonnes of Coffee. But since the start of the latest season on October 1, exports have fallen 13% to 75,179 tonnes. Production of arabica, which makes up a third of India's total coffee output, could fall 12% to 90,000 tonnes in this season as Indian farmers are not willing to sell, holding out for prices to rise.