Coffee exports have decreased but the value has increased
Indian coffee exports have decreased this year in April – June compared to the previous year. On the contrary, due to increase in the prices the value of exports has increased.
As per the data issued by the Coffee Board from the first week of April to the last week of June, The amount came to USD 324 Million while it was USD 303 Million in the same period of last year. The value of the shipments during that quarter is up by 7%. In terms of rupee, shipments were higher by approximately 14%. The total export permit issued during the quarter of coffee in the current year quarter is 0.103 Million Tonnes while in the previous year it was 0.107 Million Tonnes. Average price realizations were up around 18% at over $ 0,031 million per tonne as compared to over $ 0,027 Million per tonne.
Export and re-export data
From the first week of January 2023, till the last week of June 2023, the total volume of shipment was down by approximately 3%. In the current year, it stood at 215k Tonnes as compared with 221k Tonnes in the previous year. Out of total shipments, the Indian bean shipments were down 5% at 166k Tonnes over 175k Tonnes of the previous year. Imports of coffee beans for re-export were up and stood at 48.9k Tonnes over 46k Tonnes of the previous year. Overall shipments of instant coffees were up by 15% in volume during the current year and remained at 70.33k Tonnes against 61k Tonnes of the previous year.
Reasons of decrement in exports
The rush in prices combined with recessionary conditions in European markets such as Germany seems to have adverse effects on the demand. The economic conditions of people are seen forcing consumers in the European markets to move or divert them towards better value coffees resulting in higher demand for coffees like Instant Coffees and Robusta Cherry. This is the main reason for the reduction in the export of coffee because Germany was one of the largest importers of Arabica coffee. Though people over there have diverted to instant coffee or Robusta cherry, the taste of Arabica coffee can’t be changed.