India cuts coffee output estimate by 16pc as heavy rains trim yield

MUMBAI: India is likely to produce 319,500 tonnes of coffee in 2018/19, down nearly 16 percent from the previous estimate, after heavy rainfall hit yields in the top two growing states, the state-run Coffee Board said on Wednesday.

The South Asian country, which is famous as a tea producer, is also the world's No. 6 coffee grower, mainly churning out the robusta beans used to make instant coffee. It also produces some of the more expensive arabica variety.

The country had been expected to harvest a record crop of 380,000 tonnes, but heavy rainfall in the southern states of Karnataka and Kerala - the top two producing states - hit plantations in July and August 2018, the board said in a statement.

India is likely to produce 224,500 tonnes of robusta in the marketing year ending on Sept. 30, down 17 percent from the previous estimate, the board said.

Arabica output is expected to fall 13.6 percent from the previous forecast to 95,000 tonnes, it added.

The country's coffee exports could drop 8 percent to 230,000 tonnes in 2019 due to lower production, the head of an industry body said in October.

India exports three-quarters of its production. Italy, Germany and Belgium are the main buyers of India's crop, paying a premium over global prices.