Mumbai, Jan 1, 2009 - Indian coffee exports in 2008 fell marginally on reduced offtake from European countries due to the global financial crisis, but a weak rupee and falling freight rates provided some support, industry officials said.
Total exports in 2008 were 219,583 tonnes, compared with 220,010 tonnes a year-ago, said a senior official with the Coffee Board, who did not wish to be identified.
Exports of robusta coffee fell more than 2 percent to 108,088 tonnes during the period, while arabica exports rose 19 percent to 49,844 tonnes.
Arabica is mainly used in premium coffees, while robusta, which constitutes 70 percent of the country's output, is typically blended with arabica beans for a lower-cost option for brewed coffee, or processed into instant coffee.
Instant coffee exports also fell about 20 percent to 39,710 tonnes, the Coffee Board official said.
"Reduced offtake from European markets is hurting Indian exports," said Ramesh Rajah, president of Coffee Exporters Association of India.
India exports about 65 percent of its coffee to European countries.
Exports in 2009 are also likely to remain steady, Rajah said.
However, in value terms, exporters have been benefitted due to a weakness in rupee and a rise in unit prices, he said.
The rupee had fallen 19 percent in 2008, its biggest yearly fall since a balance of payments crisis in the early 1990s as the global financial crisis triggered a surge in capital outflows.
The unit-value, or price of a kg, of coffee has risen to 110 rupees during 2008, compared with 87 rupees a year ago, the Coffee Board official said.
In value terms, total exports rose more than 26 percent to 24.2 billion rupees.
The country is the world's sixth largest coffee producer and exports about 70-80 percent of its output.