India's coffee exports fall due to pests and vulnerability in Europe

Coffee exports from India, Asia's third-biggest supplier, may decline for the second consecutive year as the economic slowdown reduces demand in Europe and the damage from the attacks of pests reduce crop. Exports may drop to less than 300,000 tons this year, compared with the record of 310,886 tonnes in 2012, said the president of the Coffee Exporters Association of India, Ramesh Rajah. Exports fell 9.4% last year, the first annual decline in three years, according to data from the Coffee Board of India. A drop in offerings in India can help limit the decline of 39% in prices of Arabica coffee last year in New York. Inventories monitored by ICE Futures U.S. totalled 2.63 million bags of 50 kg on 1 February, the highest since March 2010. The recession in Italy, Russia and Spain, major buyers in India, limited the demand for commodities. "The requests are smaller this year because the economies of key markets are not well and buyers are seeking cheaper coffee. Arabica Coffee exports from India will be lower, as prices plummeted and the exporters are unwilling to sell at these prices. " The Euro area economy fell 0.1% in the third quarter after a contraction of 0.2% in the previous three months. The Gross Domestic Product (GDP) probably fell 0.4% over October-December and will remain stagnant in the first quarter of 2013, according to a survey by Bloomberg. Europe accounted for 38.3% of global consumption of green coffee in 2012, according to the Department of Agriculture (USDA). The coffee harvest in India may decline this year due to pest attacks caused by dry weather during the flowering period and rains during harvest, said Ramesh Rajah. The production will drop to 310,000 tonnes this year, starting Oct. 1, from a record 314,000 tonnes in the previous year, he said.
"The weather was very unusual last year. The recent rains have led to a delay in the arrival of the new harvest for three to four weeks and harvest is just now coming to market. " The attacks of pests like white stem borer, due to dry weather after flowering reduced productivity, he said. India exported 21,557 tonnes of coffee in January, including 6689 tons of Arabica, Robusta 6257 tons and 8611 tons of instant coffee.
Source: Revista Cafeicultura