"Our principals have asked us not to buy now. So we are adopting a wait-and-watch approach," said a leading coffee exporter to Russia."We are looking at the affordability of the average Russian before we buy coffee at the prevailing prices," he said.

The absence of export biddings led to a large-scale withdrawal at the auctions.

"Some 81 per cent of the arabica and 52 per cent of robusta coffees offered had to be withdrawn," said an official of the Indian Coffee's Trade Association which conducted the auction.

Arabica parchment grade was quoted at Rs 80 per kg against Rs 72 in the international market and arabica cherry at Rs 42 compared to Rs 37. Robusta parchment was Rs 60 against Rs 56.50 and robusta cherry Rs 36.50 against Rs 34.50.

About eight per cent of India's direct coffee exports are bound for Russia. But a much larger volume finds its way to Russia via Europe and also as branded coffee.

In 1997-98 (April-March), India earned Rs 157 crore from the direct export of beans to Russia.

"We are worried about our future because the coffee board has targeted a production of 300,000 tonne by the year 2000," said Appayya, a planter."If the domestic consumption refuses to rise above 55,000 tonne as it did all these years, we should export some 250,000 tonne to avoid a glut," he said, adding that India was counting on Russian demand.

Dealers said domestic prices, in the mean time, were likely to fall in the coming weeks.

"If the export market is silent, the domestic dealers will bid low as there would be no competition from outside and this will see the market coming down to global levels soon," said dealer Mohammed Kasim.

Planters also said a supply surplus was expected in the world market and which would lower domestic prices.

"The Indonesian crop which started in May will go on till September and the country will produce about 330,000 tonne -- a full one tonne more than India," Appayya said.