Declining prices, slack demand and strong rupee seem to have taken a toll on coffee exports from the country.
India exports about 70% of its coffee output. The shipments have started dropping after showing a rise earlier in 2017. Exports till April 25 this year dropped 2% from a year ago to 125,073 tonnes, according to Coffee Board data. “Many exporters sold their stock when the prices were high. Those who missed the bus will have to be content with lower prices,” said an executive of exporting firm NKG Jayanti, speaking on condition of anonymity.
The strengthening of the rupee and sluggish demand have compounded the woes of exporters.
“Most of the buyers have sufficient stocks and are well covered, and are not buying much,” the executive said.
Global robusta futures prices in London have dropped to $1,916 per tonne from a five-year high of $2,260 per tonne in January. Exporters attributed the fall in prices to speculation and arrival of crop from Vietnam, the second largest coffee producer after Brazil.