T-info
T-discovery
My
Tendata
Market Analysis
Customer
Development
Competitor
Monitoring
Customer Relationship
Trade Trends News
10-01-2024
· India’s exports may increase by 10% to 298,000 tons in 2024
· European buyers pay premium for Indian beans
· Untimely rains, labor shortages delay harvest
India's coffee exports are likely to grow by 10% in 2024 as rising global prices prompt European buyers to pay a premium to increase purchases from the country, industry officials told Reuters.
The South Asian country is best known as a tea producer and is the world's eighth-largest coffee grower, producing mostly robusta beans, which are used to make instant coffee. It also produces some of the more expensive Arabica varieties.
"Demand for Indian coffee, especially robusta beans, is strong due to firm global prices due to production issues," said Ramesh Rajah, president of the Indian Coffee Exporters Association, who expects exports to be higher this year. Growth of up to 10%.
Robusta coffee is trading near its highest level in at least 15 years as Vietnam, the world's largest producer, expects production in 2023/24 to be lower than the previous season.
Three-quarters of India's products are exported mainly to Italy, Germany and Belgium.
Indian coffee typically costs more than global benchmarks because it is grown in the shade, hand-picked and sun-dried. However, exporters said premiums were higher than normal this year due to production shortages.
Coffee exports are likely to jump to 298,000 tonnes in 2024 from 271,420 tonnes last year, a Bengaluru-based dealer at a global trading house said.
Indian robusta cherries are trading at a premium of nearly $300 a ton to London futures due to strong demand, he said.
While export demand is good, traders are waiting for an increase in supply, which could depress local prices, the dealer said.
Coffee grower MM Chengappa from Kodagu, the most productive state of Karnataka, said this season's robusta harvest is nearly 20 per cent complete despite disruptions caused by rains in the growing areas in recent days.
The state-run Coffee Board estimates that India's production in the 2023/24 season, which starts on October 1, could rise to 374,200 tonnes from 352,000 tonnes last year. However, farmers said rains have limited growth in production.
"The unseasonal downpour over the past few days, coupled with the rainfall in December, resulted in a large amount of fruit falling," Chengappa said.
Exporter Raja said labor shortages have also slowed harvest progress despite rising wages.
"Global prices are rising but Indian farmers' income is not rising in the same proportion due to rising production costs. They need to spend more on inputs and wages," Raja said.
Category
Leave Message for Demo Request or Questions
