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Coffee exports touched record levels in 2011-12

03 Apr 2012 Evaluate

Driven by high prices, a depreciating rupee and sufficient domestic supply, coffee exports grew by 10% and touched record levels of 3,48,029 tonne in 2011-12. Domestic production of the brew was also up by 6%. According to the Coffee Board, in terms of value, exports rose by 33% to Rs 4,888.30 crore, from Rs 3,674.98 crore in 2011-12.

India is the third largest grower of coffee beans in Asia and exports nearly 70% of its produce, largely to Europe. As global prices of coffee rose in response to increased demand, India too stepped up its exports with the depreciating rupee making it all the more lucrative.

Global prices of coffee rose to Rs 1,40,456 per tonne this fiscal, as against Rs 1,16,284 tonne in the 2010-11 fiscal.  The global rate of the high end Arabica rose by almost 75% to $6,424 per tonne from $3,608 per tonne in April 2010. Similarly Robusta prices increased to $2,582per tone in April 2011.

Domestic production was also estimated to have increased by over 6% at 3,22,250 tonne, including 1,04,525 tonne of Arabica and 2,17,725 tonne of Robusta.

The coming season may also see a shortfall in the global supply of the brew as it is expected that the world's top Arabica grower, Brazil may send out a sub optimal supply. Further Columbia is also expected to have a weak harvest. Demand for coffee however remains robust and hence a rise in prices could be imminent.

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