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India 2008/09 Coffee Output Seen up 12 Pct

Source: Reuters
16/06/2008

Mumbai, June 13 - India's coffee production is likely to rise 12 percent in 2008/09 due to conducive weather and better price realisation, a senior Coffee Board official said on Friday.

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Total production during 2008/09 is expected to be 293,000 tonnes, compared with 262,000 tonnes the previous year.

"This year the weather condition was good during April and May and there was no heavy rain. It has helped the coffee plants to produce more berries," the official, who did not want to be identified, told Reuters.

In India, the world's sixth largest producer, arabica harvesting season is December-February, while robusta arrivals start in February and continue through April.

Higher prices realisation due to good export demand is also likely to aid higher production, the official said.

Prices of Indian coffees have risen to about 120 rupees per kg from about 90 rupees a year ago.

The country's coffee exports rose 3.6 percent during the first five months of 2008 on good export demand from European countries and a weak rupee.

The country produces only 4 percent of the world's coffee, but exports 70-80 percent of its output.

India exports coffee mainly to Italy, Germany and Russia. Italy accounts for about 25 percent of the country's coffee exports, followed by the Russian Federation and Germany.

Arabica production is likely to rise 8.1 percent to 100,000 tonnes during 2008/09, while robusta output is forecast to be 14 percent higher at 193,000 tonnes, the official said.

Robusta is more tolerant to warm conditions than arabica and constitutes about 65 percent of India's coffee output.

Arabica coffee is normally used in premium coffees.

Production in Karnataka, which contributes more than 70 percent of the country's total output, is likely to rise 12 percent to 214,170 tonnes.

In Kerala, the output is expected to increase 16.7 percent to 57,200 tonnes.



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