Record high productivity and good prices raise coffee exports by 18% in 2016

Record high productivity and good prices raise coffee exports by 18% in 2016

Coffee trade sees export realisation and quantities rise in 2016 while unit price falls.

Sneha Gilada

Indian coffee exports are up 18% in 2016 when compared to 2015, according to a report released by the Coffee Board on 2 Jan '16.  

"The 2015-16 coffee crop achieved a record high of 3,48,000 MT of production. Due to great productivity and improved global prices in the second half of the year, exports have performed well," says an official from the Marketing and Research division of Coffee Board of India, Karnataka. 

In terms of quantity, India has exported about 55,000 tonnes more in 2016. (305680.574 tonnes in 2015 to 360949.623 tonnes in 2016). While re-exports have increased by 23%, indian coffee exports have a slightly lower contribution of 16% to this overall improvement. 

Despite a drop of 8% in the average per unit (tonnes) value of coffee, annual export realisation has surged from 5149.50 crores in 2015 to 5568.13 crores in 2016. 

Arabica and Robusta, the two primary varieties of coffee, saw their shipments jump by 18% and 21% respectively. Instant coffee exports rose from 94,859 tonnes in 2015 to 1,06,873 tonnes in 2016, reflecting an increase of 12.6%. Roasted coffee suffered a slump of 38.4%. 

Italy, Germany, Russia and Belgium are the biggest importers of coffee from India. Turkey, Slovenia, Poland, Spain, Jordan and Greece are some of the other significant importing countries. 

Next year's (2016-17) productivity estimates stand comparatively lower at 3,16,700 MT due to hot and humid weather coupled with insufficient showers. The prospect that coffee trade will perform as remarkably in 2017 is a long shot since 2016 has been cited as the 'bumper year with an all-time record highest crop'. 

Contributing 3.9% of world coffee production, India occupies the sixth spot on the list of largest coffee producers the world over. Although no competition to countries like Brazil, Vietnam and Indonesia, which take a lion's share of the world's coffee trade, India fares well in the coffee economy.  

The Dollar Business Bureau - Jan 05, 2017 12:00 IST