INDIA'S COFFEE INDUSTRY

 


OVERVIEW

The world coffee production in the coffee year 2009-10 is estimated to be 123.6 million bags signifying a decline of over 4.5 million bags in the CY 2008-09 when production totaled at 128.2 million bags. This is revealed in a report of International Coffee Organization market report for January 2010 excluding additional information that has to come from Colombia and Vietnam. The ICO report also  states of a significant fall in coffee production in Brazil - by about 14 percent besides production shortfall apprehended in countries like Cote d'Ivoire; Tanzania, Uganda, Papua New Guinea, Vietnam, Mexico, El Salvador, Equador and Peru. The Colombian production is unlikely to register worth mentioning increase. The over all world supply of coffee is likely to be tight in 2010 due to low level of opening stocks as well.

In the export front calendar 2009 closed with a decline of 3 percent at 94.7 million bags from 97.7 million bags in 2008. World consumption however is provisionally estimated at 130 million bags in 2008 from 128 million bags in 2007. Domestic consumption in exporting countries was up at 36.7 million bags compared with 35.4 million bags in calendar 2007. The Brazilian Coffee Industry Association expects 4.15 percent increase in world consumption of coffee.
 

Total world exports of coffee (2008 & 2009)

  2008 2009 % Change

Colombian Milds

12219

9278

-24.07

Other Milds

22524

20861

-7.38

Brazilian Naturals

28724

30033

4.56

Robustas

34199

34518

0.93

Total

97666

94690

-3.05

Source:  International Coffee Organization, Coffee Market report, January , 2010

Indian Coffee Board puts country's coffee production at 2.90 tonne (Post monsoon estimation) and 3.06 tonne (Post Blossom Estimation) respectively. For the present crop year beginning October, the board has estimated an output of  arabica at 101,525 tonnes and robusta 204,755 tonnes. Karnataka leads the country with 2.05 tonne (Post monsoon estimation) and 2.21 tonne (Post Blossom Estimation) production followed by Kerala and Tamil Nadu. According to ICO estimate, India produced over 3.1 million bags of 60 kgs each in 2009 compared with 3.3 million bags in 2007.Country's coffee exports during fiscal 2008-09 stood at 1.96 lakh tonne signifying marked decline from 2.18 lakh tonne in 2007-08.

India's Coffee Production (In tonne)

State

2006-07 2007-08 2008-09 2009-10

Karnataka

206025 191575 183860 205700

Kerala

59475 49000 57200 59250

Tamilnadu

18225 18100 16255 19350

Non-traditional areas (Andhra Pradesh &  Orissa)

4085 3175 4870 5185

North Eastern region

190 150 115 115

Total

288000 262000 262300 289600*


Post Monsoon estimates
*
Source: Federal Ministry of Commerce, Government of India

India accounts for about 4.5 percent of world coffee production and the industry provides employment to 6 lakh people. Among the coffee growing states, Karnataka accounts for 70 percent of country's total coffee production followed by Kerala (22 percent) and Tamil Nadu (7 percent). Europe accounts for about 70 percent of India's total coffee exports. Of this again, 70 percent is shipped via Suez Canal. Major Indian coffee importing countries include Italy, Germany, Russian federation, Spain, Belgium, Slovenia, US, Japan, Greece, Netherlands and France.

India's Exports of Coffee

Year Quantity (In tonne) Value ( In Rs crore)
2006-07 249029 2007.90
2007-08 218998 2046.29
2008-09 197171 2242.64
2009-10 (Upto March 8, 2010 181225 1944.98

Source: Federal Ministry of Commerce, Government of India

With a view to expand coffee cultivation, Coffee Board has been implementing developmental programmes for coffee development in North Eastern Region and Non Traditional areas. During 11th Five Year Plan, Coffee Board has proposed to support coffee expansion programme taken up by the Integrated Tribal Development Agency on 24000 ha. area in Andhra Pradesh and on 850 ha. area in North Eastern Region, which will facilitate export of coffee. As a part of export promotion, the Coffees from different regions with their logos are promoted including the coffee from the areas under Integrated Tribal Development Agency, as ĎArakuí Coffee. Constant endeavour is being made by the Government to help the coffee growers to ease their bank debts.

Updated on March 15, 2010

Overview
Production of ICO's exporting member countries (1996-2002)
Exports by ICO member countries (2006-2007)
Domestic consumption in selected coffee exporting countries
ICO's composite indicator prices (1982-2007)
India's coffee production, consumption & exports (1985-2006)
Prices paid to Arabica growers in India (1982-2003)
Prices paid to Robusta growers in India (1985-2003)
Coffee Imports by ICO's non-exporting member countries (2002-03)