Due to the supply squeeze and slack demand the demand in the coffee export goes down for the August quarter.
Indian coffee exports have dipped nearly 6 percent for the eight-month period that ended August 2014 following a squeeze in supply and lazy demand. While demand is expected to pick up in the coming months, growers fear that the inclement weather will pull down production.
Coffee export figures touched 2,22,297 tonne by August-end. This is 5.5 percent lower over the same period last year. The exports had shown a rise in the initial months because of increased shipments of arabica. But the shipments have slowed down after April.
"We expect it to pick up during the latter half of the year when the countries start buying for winter months . Since the Brazil crop is forecast to be on the lower side, the prices could remain on the higher side,'' said Ramesh Rajah, president of the Coffee Exporters' Association of India talking to Et Retail.
The growers said the Indian crop of arabica could be down 30 percent next year. "Heavy rains in several areas have led to black rot in coffee plants. The arabica crop had been hit by white stem borer during the pre -monsoon months. We think the crop could be 60,000 tonne,'' said, Govindappa Jayaram, chairman of Karnataka Planters' Association.