India's coffee exports to fall marginally in 2011-12

NEW DELHI: India's coffee exports are expected to decline by 1 per cent to 5.82 million bags (3.49 lakh tonnes) in the current coffee year ending September 2012, United States Department of Agriculture (USDA) has said.

According to USDA data, the country had shipped 5.87 million bags of 60 kg each (3.52 lakh tonnes) of the brew in the 2010-11 coffee year (October-September).

The government-run Coffee Board of India said that the shipments in 2010-11 coffee year stood at 3.58 lakh tonnes as against 2.68 lakh tonnes in the 2009-10 coffee year.

Indian coffee is primarily an export-oriented commodity with about 60 per cent of production being exported, it said.

The Indian robusta variety has a good reputation among international buyers. Europe continues to be the major destination for Indian coffee, it added.

On consumption in India, USDA said that the cafe culture continues to expand, but has not yet translated to a significant increase in consumption.

"Hundreds of western influenced coffee bars have emerged across India's major and 'second tier' cities over the past decade. Coffee now competes against the once dominant tea in these cafes, especially among younger consumers," it added.

A growing willingness to consume food and drink outside the home and increasing disposable income are helping to fuel the growth, USDA noted.

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