Coffee Board of India has slashed coffee production estimate for 2018-19, nearly 16% down to about 319,500 tonnes compared to previous year's, due to decline in yields after heavy rainfall in the top two growing states. India, world's No. 6 coffee grower is mainly churning out the robusta beans used to make instant coffee. It also produces some of the more expensive arabica variety.
As per the board, India had expected to harvest a record crop of 380,000 tonnes, but heavy rainfall in the top two producing states; Karnataka and Kerala; has affected plantations in July and August 2018. As per estimates, the country might produce 224,500 tonnes of robusta in the marketing year ending on September 30, down 17% from the previous estimate. Arabica output might decline by 13.6% from the previous forecast to 95,000 tonnes.
Coffee shipment from the country is expected to dip by 8% to 230,000 tonnes for the current year due to lower production, the board intimated. India exports three-quarters of its production. Italy, Germany and Belgium are the main buyers of India's crop, paying a premium over global prices.