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Higher production, falling rupee to benefit India’s coffee exports

Higher production, falling rupee to benefit India’s coffee exports
PTI
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First Published: Sun, May 25 2008. 11 23 PM IST
Updated: Sun, May 25 2008. 11 23 PM IST
New Delhi: India’s recent export sops and a falling rupee against the US dollar are likely to push the country’s coffee exports up by 4.34% to 240,000 tonnes during the 2008 marketing season, according to the US grain report.
The report from the US department of agriculture has also cited the expected higher production of coffee at 285,000 tonnes as a factor, along with the declining rupee and the government incentives, that could benefit exporters.
The country’s production of coffee is projected to be up by 9% at 285,000 tonnes during 2008, compared with 262,000 tonnes last year, the grain report said.
The government recently included coffee under its Duty Entitlement Pass Book (DEPB) scheme and the Vishesh Krishi Upaj Yojana or Special Agricultural Produce Scheme, that would support exporters through duty benefits, the report added.
DEPB allows exporters to claim refunds of Central duties paid on import of inputs, while the Vishesh Krishi Upaj Yojana aims to boost exports of fruits, vegetables, flowers, minor forest produce and their value-added products.
Since the beginning of May, the spot rupee has lost about 7.5% against the US dollar. The local currency closed at 42.70 to a dollar on Friday.
According to the US report, India exported around 230,000 tonnes of coffee last year and export orders for instant and specialty coffee saw a sharp rise.
Instant coffee constituted 30% of the exports.
India’s marketing year for coffee is January-December. Top export destinations include Italy, Russia, Germany, Belgium, Spain and Greece.
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First Published: Sun, May 25 2008. 11 23 PM IST
More Topics: Rupee | India | Coffee | Exports | Money Matters |