Average international coffee prices were up around 30% y/y in 2014, but India’s export value of coffee increased marginally to around $819 million
The Dollar Business Bureau
Indian coffee exporters have probably missed out on an opportunity to boost exports by value significantly in 2014, partly because they were unprepared for the price fluctuations seen last year.
According to the Coffee Board, India exported about 3,01,243 tonnes of coffee in calendar year 2014, which is down about 3.5% from around 3,12,364 tonnes exported in the previous year. In terms of value, India’s coffee exports have grown to around $819.04 million in 2014, up slightly from $814.89 million in the previous year.
Much of the increase in exports was seen in exports of Arabica Cherry, which grew over 50% y/y to about 14,940 tonnes in 2014, and of instant coffee which registered a growth of around 12% y/y to about 1,04,042 tonnes.
The top export destinations for Indian coffee in 2014 were: Italy (68,442.8 tonnes), Germany (30,048.2 tonnes), Russia (22,362.7 tonnes), Turkey (15,842.15 tonnes), Belgium (13,862 tonnes), and Indonesia (11,532.3 tonnes). CCL Products, ITC, Allanasons, Tata Coffee and Nestle were the top five exporters in 2014.
However, coffee exporters might have lost an opportunity that the global markets presented earlier last year. Due to apprehensions of a smaller crop in the major exporting country, Brazil, international coffee prices had shot up to a two year high in October 2014.
According to the International Coffee Organisation (ICO), average prices in October 2014 stood at around Rs.2,07,456 per tonne, which is up around 25% from the average unit value of around Rs.1,65,529 per tonne recorded by Indian exporters last year.
However, India’s coffee exports were hurt due to a smaller production in some coffee growing areas due to ill-timed rains and poor sales planning. Sources say that much of India’s coffee exports last year took place before the price spike beginning in April 2014 and started picking up again after November when international prices had stabilised. High domestic prices for most part of 2014 also kept India’s coffee exports down.
This article was published on January 3, 2015.
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