Mumbai: Prices at the Indian Coffee Association’s Thursday auctions climbed higher as export demand showed an upward trend, traders said on Friday.
“The new season arabica plantation grades received strong enquiry from exporters and internal buyers,” said a trader-based in Bangalore.
Export demand was concentrated on the arabica plantation premium grades, which helped push prices higher by Rs200-250 per 50 kg, he added.
India produces only 4% of the world’s coffee, but exports 70-80% of its produce.
Total Indian Coffee exports in 2008 were 219,583 tonnes, compared with 220,010 tonnes a year ago, according to the Coffee Board.
Last season’s arabica plantation crop remained unsold as prices quoted were higher than what buyers were willing to pay, traders said.
However, robusta cherry PB and AB grades from the earlier season received strong support and prices moved higher by Rs75-150 per 50 kg.
In India, arabica coffee arrivals started in November and will continue through till February, while arrivals of robusta begin from mid-January and continue through April.
The total quantity on offer at the auction was 250.28 tonnes of which 80 tonnes were sold, an auctioneer said.