Mumbai: Prices at the Indian Coffee Trade Association auction on Thursday rose on tight supply and rising export demand, traders said on Friday, 29 August.
“Arrivals are thin as growers are left with very little stocks,” said a Bangalore-based trader who did not want to be identified.
In India, arabica harvesting will start in November, while robusta arrivals start in February.
Demand from both domestic and export market is on rise, which is also supporting the prices, said another trader.
Robusta cherry variety received strong support from domestic buyers and prices for PB grade were higher by Rs100-150, at Rs5,100-5,150, he said.
The country’s domestic consumption is likely to increase to 160,000 tonnes by 2017 from 90,000 tonnes in 2007, G.V. Krishna Rau, chairman of the Coffee Board, told Reuters last week.
India’s coffee exports rose 5.7% to 165,279 tonnes as of 27 August, according to the data from Coffee Board.
India produces only 4% of the world’s coffee, but exports 70-80% of its produce, thus domestic prices often mirror international trends.
Total quantity on offer at the auction was 225 tonnes and about 46 tonnes were sold, an auctioneer said.