India Coffee Robusta Parchment Increase

Indian coffee especially robusta parchment variety is getting increased export orders according to leading auctioneers, J Thomas & Co. Robusta parchment prices rose by Rs 150-350 per 50 kg, compared to previous week. Of the total 242,162 kg offered, approximately 60,000 kg was sold at the auction held on Thursday.

India shipped 230,883 tonnes of coffee in the eight months of the coffee year that started in October, down 3.7 percent on year, the state-run Coffee Board said. India’s production of coffee is estimated at 320,000 tonnes for the crop year to September, higher than the 302,000 tonnes produced a year ago, Coffee Board data shows.

According to International Coffee Organisation (ICO), Robusta prices recorded significant rise in May while Arabica prices fell further in the month.

The monthly average of the ICO composite indicator price fell by 1.7% from 160.46 US cents/lb in April to 157.68 in May. This is the lowest level recorded since August 2010. Moreover, price volatility increased only in the case of Robustas.

In terms of market fundamentals, total production of all exporting countries in crop year 2011/12 is estimated at around 131.9 million bags compared with 134.2 million bags in 2010/11. For crop year 2012/13 the second estimate of Brazilian production forecasts a crop of at least 50.4 million bags, an increase of 16% in relation to the previous crop year. Production increases are also expected in other exporting countries, encouraged by the performance of coffee prices in recent years, ICO said.