India boosted coffee exports 33 percent to a record 358,278 tonnes in the year ending September 30, the state-run Coffee Board said, helped by huge stocks carried over from the previous year and lower supplies from competitors. Coffee exports in value terms soared to $1.048 billion from $577.98 million in the year earlier as prices rose.
"There was a substantial jump in production of robusta and international prices have (been) firm this year," said Shahadev Balkrishna, chairman of the Karnataka Planters' Association. The carry forward stock rose to 30,000 tonnes in 2010-11, from about 7,000 tonnes a year ago, Balkrishna said. Production of robusta coffee in 2010/11 was 207,860 tonnes, up 6.5 percent on a year earlier.
India is the world's fifth-biggest producer of coffee but accounts for only 4.5 percent of global output. It exports 70 to 80 percent of its production with coffee consumption primarily in the south and modern coffee shops just starting to make inroads in urban areas. "There was a shortfall in other producing countries. It boosted demand for Indian coffee," said an exports manager at a leading coffee exporting firm.
Global coffee consumption is likely to outstrip production in 2011/12, leading to a "tight situation" with supplies, outgoing International Coffee Organisation acting Executive Director Jose Sette said on Friday. He said global coffee production in 2011/12 was seen around 129.5 million bags (each of 60 kg) and consumption at about 134 million bags. Exporters said volatility in prices and a debt crisis in the euro zone could slow the pace of exports, but they will certainly rise further in 2011/12. Italy, Germany and Belguim are the top three buyers of Indian coffee. "This year we are expecting higher production. It will help us in raising exports," the exports manager said, as global supplies elsewhere will be tight.
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