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As international prices increase, Coffee exports riseg

Robusta coffee exportsAbout 15 % of volume Indian coffee export has increased since January 2017 due to hike in demand in the international market and set back in coffee production by Brazil when compared with the export a year ago and because of the weather conditions.

As per a data by Coffee shows that from January 1 coffee export and re-export in a fortnight reached to 46,000 tonnes which were in the same period last year only 43,436 tonnes. The sale from exports increased from $103.3 million (Rs.699.4 crore) in the first fortnight of last year to $119.2 million (Rs.805.3 crore) in the same period this year in money terms.

With rising prices and expects, the industry is happy that this trend goes on. The price of a bag (50 kg) of the Arabica coffee type is Rs.9,200-9,500 which has in December 2016 increased from Rs.8,500. Three years back, the prices were at a peak of Rs.12, 000-13,000 a bag.

As the demand for this type of coffee is increasing, now India growers are shifting over to the Robusta type, previously they were mainly growing Arabica type. In making instant coffee, the Robusta is mainly used. In December 2016, the prices of Robusta variety have increased from Rs.6, 200-6,300 to a current price of Rs.7, 000-7,200 a bag.

Because of increase in the cost of production and fall in selling prices, the last three years have been bad for coffee growers and traders and due to drops in prices and production and a rise in production cost, exporters have been through difficult times.

In the international market, the analysts feel that the prices will rise further. the Arabica variety is $147.80 a pound currently, analysed by New York-based Intercontinental Exchange and by March will go up to $150.35 and by July to $154.10. In March 2017, The Robusta price has been calculated to reach $2,158 a tonne from $2,156 currently and in July will further raise to $2,202.

In 2015, from India, the export of the Indian Arabica variety increased 18% to 51,648 tonnes from 43,785 tonnes. By 20% The Robusta shipments increased and reached to 201,000 tonnes in 2016 from 167,000 tonnes in 2015.

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