Madikeri, Jan 3: India's coffee exports has witnessed a sharp fall by 12 per cent-- 3.06 lakh tonnes in 2020 (till December ) following decline in demand across European markets that were shut down due to Lockdown following spread of Covid-19 pandemic.
According to data available with the Coffee Board, export earnings were lower by 9.9 percent to USDollar 708 million as against USDollar 786 million earned in the previous year. In rupee terms, exporters earned Rs 5,249 crore compared to Rs 5,527 crore in the previous year, a marginal decline of 5 per cent year-on-year.
Official sources in the Coffee Board in Chikkamagaluru told uni that the unit value realisation stood at Rs 1,71,517 per ton during the year as against Rs 1,59,260 per ton in 2019, a rise of 7.7 per cent year-on-year.
Decline in exports was more or less in line with expectations. At the beginning of the year, it was projected around 10 per cent drop in exports as adverse weather conditions caused a decline in production over the last two years,” Ramesh Rajah, President, Coffee Exporters Association of India, said and added that the Natural calamity during the last three year claimed several lives besides the coffee growers in Kodagu district had incurred a huge loss.
On the other hand the coffee growers facing acute shortage of labourers, many growers have outsourced the entire coffee estate after being unable to manage the situation, since, Covid-19 migrant labourers were left their native places.
Meanwhile Coffee planters across growing regions of Kodagu, Chikmagalur and Hassan are staring at a loss of production this season due to off-season rains in November and December causing a delay in the harvesting of the crop.
The planters are also facing an acute shortage of labour to pluck beans as nearly 50 percent of the workers that come from north-eastern states have not returned yet due to spread of coronavirus pandemic. As a result, the growers are staring at a reduction in the production of Arabica parchment (premium washed coffee) and lower realisations. Early ripening of Robusta crops has also added to the woes as there are not enough workers to be deployed for the harvesting operations.
Off-season rains in November and December have not only led to delay in harvest. Usually, the coffee crop needs two to three months of dry period post-monsoon or else it will lead to the splitting of beans.
It will also lead to a decline in parchment production and output of cherries will go up, which fetches far less value than parchment,” Bose Mandanna, a grower from Kodagu and former Coffee Board Vice Chairman said.
Currently, prices of Arabica parchment are ruling at Rs 10,500 per bag, while cherries fetch Rs 4,000 per bag at the farm gate level.
The growers are also facing problems with the drying of beans due to lack of sunlight. The drying process is taking an unusual 10-12 days this year as against 5-6 days, thereby resulting in a further delay in dispatching the stocks to cure centres, ther shipments were delayed partly due to lockdowns across European markets. About 2-3 per cent drop in exports could be attributed to drop in demand following lockdowns across many markets, he said.
Rajah said the outlook for 2021 looks to be better because of a fairly higher crop this year. The coffee output is pegged between 310,000 tonnes and 330,000 tonnes, according to trade estimates. However, the outlook for 2021 looks to be better because of a fairly higher crop this year. The coffee output is pegged between 310,000 tonnes and 330,000 tonnes, according to trade estimates. However, exports are likely to remain subdued during the first few months owing to continued lockdowns in European countries due to the second wave of coronavirus, he added.
Comments
Add new comment