After clocking a record billion dollars in export value during 2021-22 fiscal, Indian coffee shipments have made a good start in the current financial year.

Higher prices, improving demand coupled with the increased availability of beans for shipments have contributed to the good export performance during the April-June quarter, which has also been aided by a strong dollar.

Traditionally, the April-June quarter is a peak shipment period for Indian coffee. Based on the permits issued by the Coffee Board, in volume terms, shipments were up 13 per cent at 1.13 lakh tonnes during the April-June quarter this year against 0.99 lakh tonnes posted in the same quarter last year.

Shipments were up 37 per cent in dollar terms at $318.96 million. Similarly, in rupee terms, exports during the June quarter were up 43.61 per cent at ₹2,461 crore. The average realisation was up by 27 per cent at ₹2.17 lakh per tonne due to higher global prices.

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India’s coffee shipments had touched a record $1,030.55 million in 2021-22 — up 40 per cent over $735 million the previous year. However, shipments marginally fell short of the targetted $1,070 million.

For the current financial year, the export target has been increased marginally to $1,088 million, said KG Jagadeesha, CEO and Secretary, Coffee Board. “The first quarter shipments have been good. In the current quarter also, we expect a decent performance. Prices are good and on that count, we have an advantage and we will be able to achieve the target,” he said.

No war impact

The Ukraine war has had no major impact on Indian shipments, Jagadeesha said. However, payments are not being realised on time. Once the rupee-rouble payment mechanism is formalised, there will be a jump in shipments, he said. Russia is a major buyer of Indian instant coffees.

Ramesh Rajah, President of the Coffee Exporters Association, attributes the good performance to higher prices and improved availability of beans due to a good crop. The volume growth was aided by carry-over stocks and the spillover demand from last year.

“Lot of contracts from last year that were delayed due to the Covid were shipped out during the quarter. There was a slight window during the quarter, when container availability became better, helping exporters to ship out coffee fast. There was also pressure from the buyers for quick shipments due to the decline in their inventories,” Rajah said.

On the outlook for the current quarter, Rajah said shipments should be good. Though there was a temporary impact due to the war, things seem to be normalising on the shipments, he said.

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