Bangalore-based Coffee Exporters Association and All India Pool Sale Dealers Association and Coimbatore-based All India Coffee Merchants Association in a letter to Coffee Board chairman said in view of the tight supply situation no robusta coffee was available for export.

While domestic prices have increased from Rs 73 a kg to Rs 82, Indian exporters had stopped booking new orders for rest of the season, ending November this year.

Contracts entered into by exporters were being cancelled to avoid default and these amounted to at least 5,000 tonnes, they said.

Further cancellation of robusta exports were likely and this would lead to buyer branding India an unreliable suppliers, thus leading to price discount in future.

Moreover, India would many loyal buyers, especially roasters inItaly, Australia, Greece and Japan. These countries use Indian robustas as blends as primary coffee and they would be forced to change over to other origins resulting in India losing its hold permanently, they said.

The exporters said the situation was even worse in the instant coffee sector where consumers used to Indian coffee would be compelled to taste other origins.

There was a fear that these markets might be lost forever, they said.

The situation could, however, be saved if India allowed import of Indonesian robusta under open general license, which facilitates shipment of unrestricted quantity into the country for a license holder, for internal consumption.

These imports could be subject to very stringent phyto-sanitary conditions and these imports could free an equivalent amount for exports.

Till August 27, India had exported 1.38 lakh tonnes of robustas, while 14,000 tonnes had been consumed domestically.

With a carry forward stock of 29,000 from last season (December 1996-November1997), and production of 1.43 lakh tonnes, only 2,000 tonnes would be left for exports this month after taking into consideration the 10,000 tonnes required for consumption upto December 31, they said.

Robustas make up around 52 per cent of India's total coffee production, estimated to be 2.32 lakh tonnes this year.

Robusta future coffee prices increased on demand from exporters and a perceived shortage, while arabica prices slid on the domestic futures coffee exchange here on a downtrend in the global market, dealers said.

Robusta production is expected to be lower this season and it cast an effect on the future contracts, they said. Arabica prices were down since rates for mild arabicas in the international markets were ruling low.