The Central Arecanut and Cocoa Marketing and Processing Cooperative (Campco) has decided to keep the price of wet cocoa beans stable, despite the continued absence of major private players in the domestic market.
On Monday, Campco offered a maximum of ₹160 a kg for wet cocoa beans and a maximum of ₹560 a kg for dry cocoa beans in the market. It bought wet cocoa beans at a maximum of ₹180 a kg and dry cocoa beans at a maximum of ₹640 a kg on May 27.
Highlighting the continued reluctance of major private players to engage in purchasing wet cocoa beans over the past week, A Kishore Kumar Kodgi, Campco President, told businessline that Campco made the choice to remain active in the market despite this, underscoring its commitment to supporting small grower members who supply wet cocoa beans to the co-operative.
The co-operative aims to ensure the best possible returns for its members, particularly in the absence of major buyers in the domestic cocoa market, he said. While Campco’s decision to maintain cocoa bean prices reflects its support for small-scale growers, the international cocoa market faces significant uncertainties.
High deficit forecast
July US cocoa futures touched a high of $9,420 a tonne on May 31. July London cocoa futures touched a high of £7,700 a tonne on May 30.
Releasing its forecast for the cocoa year 2023-24 (October-September), the International Cocoa Organisation’s (ICCO) Quarterly Bulletin of Cocoa Statistics said it is certain the 2023-24 season will end in a higher deficit than previously expected.
Much lower cocoa supplies from the leading producing countries have further extended the supply deficit. Global production is projected to touch 4.461 million tonnes (mt) in 2023-24 from 5.047 mt in 2022-23, a decline of 11.7 per cent, ICCO bulletin said.
Global exports of cocoa beans and semi-finished cocoa products, measured in bean equivalent, reached 2.36 mt during October to December 2023, representing a decrease of almost 6 per cent compared to 2.5 mt recorded during the same period in the previous season. The decline in trade activities may be a consequence of the supply tightness from top producing countries in West Africa, it said.