Kochi:
A crop shortfall and higher international demand are raising robusta coffee prices while arabica prices, which had fallen in the past few months, are going up again.
Many roasters increased the share of robusta in blends six months ago when arabica prices zoomed due to a global crop shortage. Robusta prices, which have been more or less steady, are now looking up following an uptick in demand. Arabica prices which had declined in the past few months are becoming dearer as well. In London, the September contract for robusta climbed up 1.7% to $2,246 per tonne. The New York prices of arabica, which had plunged from 300 cents per pound to 148 cents, have edged up to 173 cents per pound.
“Local coffee prices reflect international trends. Robusta parchment prices are ruling in the range of Rs 190 to Rs 200 per kg. Arabica plantation prices have also touched Rs 215 per kg, though not as high as the level attained last year,” said BS Suryaprakash, chief executive of Coorg Coffee Supplies.
The prices of robusta cherry, which account for the bulk of coffee production, have moved up by Rs 20 to Rs 140 per kg now. “The roasters who did not buy earlier are lifting the stock shelling out more,” said a buying agent for a coffee exporting firm.
The local roasters who had raised the prices by 10%-15% when arabica prices shot up cut the prices marginally when the beans became cheaper. Others managed to do without a price increase by adding more robusta and chicory to the blends. Roasters are now monitoring the situation closely and may go for an upward revision if the trend persists, Suryaprakash said.
Demand for robusta has gone up in the last year when arabica prices zoomed. This has led to more buying of the variety. But given the good harvest in Vietnam and Brazil, prices may not go up sharply. Planters in India have predicted the robusta crop for the next season to be around 10,000 tonne smaller than the Coffee Board estimate of 2.21 lakh tonne.
But coffee exports, unlike last year, were around 5% lower at 2,24,529 tonne during the January 1-July 25 period, which may make available more coffee for domestic roasters, said Marvin Rodrigues, chairman of Karnataka Planters’ Association.
source: http://www.articles.economictimes.indiatimes.com / Home> News> Economy> Agriculture / by P K Krishnakumari, ET Bureau / July 31st, 2012
