Coffee exports up 18% in 2016 on strong demand, global prices

India's coffee exports rose by 18 per cent to 3,60,949 tonnes during the 2016 calendar year on strong demand and higher international prices, according to the Coffee Board.

In value terms also, the outbound shipments of coffee increased by 8.13 per cent to Rs 5,568.13 crore even as the export realisation was lower at Rs 1,54,263.42 a tonne.

As per the Coffee Board's latest data, the overall coffee exports increased to Rs 3,60,949 tonnes in 2016 from 3,05,680 tonnes previous year.

"Our export volumes have gone up because we had record 2015-16 crop and international prices improved in the second half of 2016," a senior Board official told PTI.

Re-export of value-added coffee rose substantially during 2016. Much of the coffee was exported to Italy, Germany and Russia, he said.

The official said that average export realisation for the year was lower because global coffee prices improved only in the second half of the year.

As per the Board's data, the shipment of robusta variety coffee increased by 21 per cent to 2,01,979 tonnes from 1,67,466 tonnes, while that of arabica coffee jumped by 18 per cent to 51,648 tonnes from 43,785 tonnes in the said period.

However, the export of instant coffee remained lower by 10 per cent at 25,546 tonnes in 2016 when compared with 28,366 tonnes in the last year.

Though the total shipment volumes were higher but the export realisation remained lower at Rs 1,54,263.42 per tonne in 2016 as against Rs 1,68,460.14 per tonne previous year.

During last year, coffee grown during the 2015-16 crop year (November-October) was exported. Normally, shipments peak during the March-June period.

Presently, the new coffee is being harvested and traders of the view that the arrivals have slowed down due to demonetisation.

Coffee output in the 2016-17 crop year is estimated to decline to 3,16,700 tonnes from the record level of 3,48,000 tonnes achieved last year, due to severe drought in some key growing states, especially Karnataka.