Higher prices may lift coffee exports value in April-June quarter

Record prices were seen lifting coffee shipments in terms of value during the April-June quarter even as exporters faced lower demand which was seen reflected in lower volumes during the quarter compared to the same period last year.

Based on disclosures from the Coffee Board for April 1 through June 27, the value of shipments for the quarter rose 7 percent to $324 million, above $303 million in the same period last year. In rupee terms, shipments were about 14 per cent higher at Rs 2,670 crore than the Rs 2,343 crore in last year’s period.

In terms of quantity, permits issued during the quarter decreased to 1.03 thousand tons compared to 1.07 thousand tons in the previous year. Average price achievement increased by about 18 per cent at more than 2.57 lakh per tonne compared to more than 2.18 lakh per tonne.

imports for re-export

In the current calendar year from January 1 to June 29, freight volume is down about 3 percent at 2.15 thousand tons compared to 2.21 thousand tons a year ago. Of this, Indian bean shipments were down 5 percent at 1.66 thousand tons (1.75 thousand tons a year ago). Re-export imports rose to 48,969 tons (46,055 tons). Total shipment volume of instant coffee is up 15 percent over the calendar year, year-to-date, at 70,330 tons versus 61,063 tons.

According to the exporters, rising prices coupled with recessionary conditions in key European markets such as Germany are seen to weigh on demand. Prevailing economic conditions are forcing consumers in European markets to shift towards better value coffee resulting in increased demand for instant coffee and Robusta cherries.