Demand Supply dynamics of coffee beans in the global market and the depreciation of Indian currency rupee against US dollar, had affected the export performance of Indian coffee beans exports. India’s coffee beans exports, in volume terms, registered a marginal growth of 2.88% to touch 313,035 tonnes for the year 2013-14 compared to 304,251 tonnes in the previous year. But in value terms, the exporters earned US $812 million, which is 7.6% lower than the previous year 2012-13 where the value of coffee beans exports was at worth of US $879 million. The decline in value is mainly attributed to the depreciation of Indian currency Rupee against Dollar. However, in rupee terms, the value of coffee beans export was almost same as last year due to the depreciation against dollar. The value of exports in Indian rupee terms stood at Rs 4,769 crore during the financial year 2014 as against Rs 4,639 crore, a marginal growth of 2.8%. The unit value realization was flat at Rs 1, 52,360 per tonne as against Rs 1, 52,466 per tonne in 2012-13, according to Coffee Board of India.
In 2012-13, India’s coffee bean exports stood at 310,612 metric tonnes, generating revenue of US$ 959.47 million. India exports coffee to over 45 countries and more than 50 per cent of Indian exports in 2012-13 was to Europe. Italy is the largest market, followed by the Russian Federation, Germany, Belgium and Slovenia In 2012-13, India exported 25.08 per cent (77,906 metric tonnes) to Italy and generated revenues of US$ 205.6 million. According to the Coffee Board of India estimates, in the fourth quarter of the fiscal ended March 2014, Coffee beans exports went up 1.71% to 97,279 tonnes from 96,279 tonnes in the corresponding quarter last year.
In the global commodity market, the price of Coffee beans had shown a marked decline during the year 2013. Bumper harvests in Brazil, the world’s largest supplier of Arabica coffee beans, forced the prices to plunge in the year 2013. Arabica prices have slid 23% in 2013 following robust Brazilian production and a recovery in output in neighboring Colombia, the world’s second-largest Arabica grower. However, in February, 2014, due to the expectation of a fall in the Brazilian supplies of coffee beans in the international market, the price of Arabica futures had gone up by 44%, the biggest monthly percentage increase in almost two decades. Brazil has been facing one of the worst drought conditions in its coffee beans producing belt regions which destroyed the crop yields considerably and affected the supply of coffee beans.