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Press Trust of India
November 1: A stoppage in instant coffee exports to Russia, which is facing a financial crisis, has helped ensure availability of robusta coffee in the domestic market, industry officials said.
In view of the stoppage of exports to Russia, adequate availability of coffee could be ensured in the domestic market, the officials said. "There is no need to import coffee as enough quantity is available due to the russian problem," Coffee Futures Exchange of India (Cofei) chairman Ashwin Shah said.
Indian coffee exporters and traders sought unrestricted robusta coffee imports from Indonesia last month saying only 12,000 tonnes were available till the year-end of the 1.3 lakh tonnes produced during the 1997-98 (October-September) crop year besides the 29,000 tonnes carryover stock from the 1996-97 crop year. However, the Coffee Board turned down their demand saying enough coffee was available, even if one were to go by the industry's statistics. Instant coffee exports to Russia stopped.
Exporters said instantcoffee exports had come to a halt since the beginning of the month as Russia was unable to pay following collapse of its banking system due to depreciation of the rouble against the US dollar. Industry officials said exporters were not taking orders for shipment as coffee was not available.
But Coffee Board chairman SV Ranganath said coffee was available in the country. "as far as robusta availability is concerned, it is not available to exporters at the price which they demand," he said.
Arun Bidappa of Karnataka Coffee Brokers Limited said though coffee exports to Russia had been disrupted, it was end of the season as far as availability was concerned.
Coffee availability for domestic market was comfortable as the quantity which was to go to Russia was now available in the domestic market, he said.
An exporter said fresh enquiries were coming in for robusta but they were not able to buy any quantity in the local market as growers were looking for higher prices. "Exporters are looking at lower pricelevel but growers are looking for better price. This is because very low quantity is left in view of the season end," the exporter, who did not wish to be identified, said. Ranganath said it was natural for growers to demand higher prices."It is a question of negotiating the price, which exporters seem to be unwilling," he said.
The exporter said most of them had finished their shipments and were awaiting arrival of the new crop, expected to start sometime next month."Pickings are expected to begin for robustas in Kerala next month and by November-end new crop should come to the market," he said.
India's coffee production during the current crop year is projected to be a record 2.33 lakh tonnes against 2.30 lakh tonnes estimated to have been produced during the last crop year.
Though the country contribution to global coffee production is a meagre three per cent, it exports two-thirds of what it produces.
Russia accounts for nearly 20 per of India's coffee exports, which has been put at 1.87 lakhtonnes till October 22 from January this year.
At the same time, domestic consumption of coffee has stagnated around 60,000 tonnes during the last decade. However, it is feared to have declined during the last two years due to a sharp rise in the commodity's prices.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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