NEW DELHI, February 23: The country's coffee exports could be affected if growers and sellers continue to demand prices higher than those prevailing in global markets, exporters have warned. "The sellers are sitting on the prices and in view of the high prices quoted by them, the export picture is not rosy," a leading exporter in Bangalore said.The international coffee market has been witnessing a two-way choppy trade, with roasters saying enough coffee was available and warehouses indicating marginal fall in stocks. Though production in Brazil is expected to be high this year, it is likely to be lower in other leading producer-nations like Colombia.
A ten per cent to 15 per cent fall in Arabica domestic production has been estimated in view of unseasonal rainfall in November-December 1997. Higher prices quoted by sellers have led to differences with the buyers, leading to large scale withdrawal of the offerings at the country's only auctions in Bangalore. The situation is unlikely to improve unless thesellers reduce their prices, the exporter said.
However, last week, the offtake at the auctions increased despite a marginal rise in prices.
Domestic uncured coffee prices at the auctions were higher than global prices last week. While international Arabica parchment were quoted at Rs 5,400 per 50 kg bag, thse domestic prices ruled at Rs 5,600 per 50 kg bag.
While Arabica cherry and global prices were on terms at Rs 2,800 per 50 kg bag, Robusta cherry global prices were lower by Rs 100 per 50 kg bag at Rs 1,500 against domestic price of Rs 1,600.
Asked about the export trend during the last two months, the exporter said it was neither good nor bad.
During the first nine months of the current fiscal, coffee exports have been more or less at the same level as last year, at 1.07 lakh tonne. The Coffee Board has anticipated total exports this year to be around last year's level of 1.60 lakh tonne.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
