India’s coffee shipments fell by 10.7% to 598,240 bags in April 2019, while its exports in the first seven months decreased by 9.9% to 3.55 million bags, according to the International Coffee Organization (ICO).
The latest ICO monthly report said that lower production coupled with rising domestic consumption has led to a decrease in coffee available for export.
Italy, Germany and the Russian Federation were the main destinations for India’s exports in April 2019, it added.
“India’s production for crop year 2018/19 is estimated at 5.2 million bags, which is 10.5% lower than in 2017/18, and is the lowest volume harvested in the last five years,” the report said, adding that heavy rains and flooding at the end of last summer negatively affected the development of the 2018/19 crop.
World coffee exports in April, however, rose by 4.6% to 10.73 million bags compared to the same month of the previous year.
Shipments of Brazilian Naturals grew by 17.7% to 3.14 million bags, due to a 24.6% increase to 2.98 million bags of Brazil’s exports in April, the ICO report said, adding that Colombian Milds amounted to 1.11 million bags while Robustas reached 3.91 million bags, a growth of 2.1% and 0.5%, respectively.
However, other Milds declined by 1.6% to 2.57 million bags.
Global exports up
Global exports in the first seven months of coffee year 2018/19 reached 74.01 million bags compared to 70.89 million bags in 2017/18, the ICO said.
- For October 2018 to April 2019, shipments of Brazilian Naturals increased by 18.5% by 24.86 million bags, and exports of Colombian Milds grew by 8% to 9.07 million bags. Robusta shipments fell by 0.3% to 26.09 million bags while exports of Other Milds decreased by 8.9% to 13.97 million bags in the first seven months of coffee year 2018/19.
- In April, Brazil exported 2.98 million bags compared to 2.39 million bags in the same month in 2018.
- In the first seven months of coffee year 2018/19, its shipments rose by 26.3% to 24.26 million bags, of which green Arabica amounted to 2.52 million bags and green Robusta to around 197,000 bags.
- Brazil’s output increased 18.5% to 62.5 million bags in crop year 2018/19, which provided ample supplies as the new crop year started in April.
Crop year 2019/20 is anticipated to be a large off-year crop, though recent reports of adverse weather have tempered these expectations.
- Vietnam’s exports are estimated at 2.4 million bags in April 2019, 5.9% lower than April 2018.
- Shipments for the first seven months of coffee year 2018/19 are estimated at 16.15 million bags, which is 5% lower than the same period in 2017/18.
- Vietnam’s output is estimated 3.4% lower at 29.5 million bags in coffee year 2018/19.
- Productivity has been affected by low water levels for irrigation and low prices that have discouraged farmers from investing in their coffee trees.
- The reduced volume in its harvest, as well as competition from other significant Robusta exporters, has led to lower exports from Vietnam in coffee year 2018/19.