Indian coffee exporters are bracing themselves for a tough year as the coffee prices have plummeted with the latest forecast suggesting a good crop in Brazil and Vietnam, the top two producers of coffee in the world. Coffee exports from India have been weak with main buyers like European countries going slow on purchases.
The plans of the growers who have been holding on to the stock anticipating better prices have come unstuck as the prices may not rise in the immediate future. “Globally the prices have fallen, but the growers here are not willing to sell at lower prices. As a result, there is a mismatch in rates. The export-trend is also weak. So we are adopting a wait-and-watch policy,” said M P Devaiah, general manager of Allanasons, a major exporter of coffee. What has upset the calculations is the coffee supply from Brazil.