Record high coffee exports hit domestic stocks

Rising coffee prices on the international market have boosted exports to coffee producing countries over the past year, however according to a report by The Financial Press, domestic stocks have been greatly affected. “The coffee stock position in India is in very bad shape due to a sudden spurt in coffee exports in the past 18 months,” says G Manjunath, managing director of Bangalore-based Sivadarsh Exports. Manjunath says the availability of good coffee from the estates has become rare as the traders are rushing to buy them in bulk to meet their export requirements. India recorded the highest level of exports ever in the first six months of the current coffee year ending March 2011, according to the latest figures released by the International Coffee Organisation (ICO). During October-March 2011, India exported 2.89 million bags (60 kg a bag) compared to 1.74 million bags in the same period a year ago, recording a jump of 65 per cent. In the first six months of the crop year, 11 major coffee producing countries, including India, exported 52.92 million bags – a large increase from the 45.84 million bags recorded a year ago. During this period, exports jumped significantly in Ethiopia with an increase of 104% followed by India at 65 per cent, Columbia 36 per cent, Honduras 31 per cent, Peru 28 per cent, Brazil 19 per cent and Vietnam 12 per cent. World coffee exports reached 101 million coffee bags as of March 2011, the highest level ever recorded.