As per reports, India’s coffee exports are likely to take a hit in the April-June quarter as orders from Italy, which has been the largest buyer of Indian Coffee has been battling a severe outbreak of coronavirus. Italy has been importing over a fifth of India’s coffee shipments.
Ramesh Rajah, President of the Coffee Exporters Association said, “Order booking has slowed down and exporters are somehow trying to execute the existing orders. The impact will be felt in the April-June quarter”.
Moreover, Italy has been brutally struck by Coronavirus across its land and has a severe crisis on its hand.
To add to the woes, logistics and shipment have also been impacted by the Coronavirus strike across the globe. As per reports, the availability of containers is also going to be a major concern in the days ahead. “Shipping agencies have indicated that there could be a shortage of containers due to the disruption of business in China, from where a lot of containers come,” said Rajah.
As per reports, some exporters are facing delays in payments from buyers in Italy as banks in that country are not functioning at full capacity, he said.
The reports show that the slowdown in exports is happening at this time of the year when shipments are normally at peak. The buying has slowed down triggering concerns among the growers, who have held back their produce as a result of the coronavirus crisis. On the other hand, Jordan which is among the top 10 buyers of Indian coffees, has asked the Indian exporters to delay their shipments by a few weeks till we get to know the exact situation,” said Rajah.