The fall in Indian currency against the dollar in the last few weeks has raised a ray of hope for domestic coffee exporters who have been witnessing bearish sentiment since the beginning of this year. Arabica bean exports have declined close to 40% since January 1 due to a combination of factors including price drop.
Prices in the international market are currently ruling at 130-140 cents per lb, showing a decline of 27% compared to 180 cents per lb in October and November last year. Also, the higher premium charged by the Indian exporters for Arabica beans has led to drop in exports between January 1 and May 14.
Since mid-January, the Indian rupee has depreciated over 3% to Rs 63.68 against the dollar, thereby giving hope to exporters. Though the prices of coffee beans are at lower side currently, they can look for higher recovery, exporters said.