Coffee exports rise

January 4, 2007
India's coffee exports rose by 13 per cent last year to 230,304 tonnes from 203,768 tonnes a year earlier with a rise in international prices spurring overseas sales, a Coffee Board of India official said.

India produces only 4.5 per cent of the world's coffee, but exports 70 to 80 per cent of its output.

Most is sold to Italy, Russia and other European countries. Major producers include Tata Coffee and Bombay Burmah Trading Corporation.

'There is a pull in the market because of growing coffee consumption globally and a shortage in supply in major markets overseas,' said Anil Bhandari of the Coffee Board of India.

'The rise in exports last year is also reflective of the firm coffee prices in the international market. Exports in 2007 should also be good as prices are expected to stay upbeat through the year,' he said.

The price of India's coffee in international markets rose by 10 per cent to 78.44 rupees ($1.77) per kg in 2006, from 71.24 rupees ($1.61) in the previous year, the Coffee Board said.

Total export earnings rose to $405.58 million last year from $338.39 million in 2005.

Italy accounted for 26 per cent of India's coffee exports last year, followed by Germany at 11 per cent and Russia at 10 per cent, the figures showed. India exports coffee to about 50 countries.

Trade officials said India's coffee output in the crop year ending September 2007 is likely to be 288,000 tonnes, slightly higher than last year's production of 274,000 tonnes.Reuters