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31-May2013

Coffee production in 2013-14 likely to remain stagnant at 5.2 million bags

The production of coffee in India is expected to be stagnant at last year's level of 5.2 million bags in the marketing year 2013-14 (starting October), as per report compiled by the US Department of Agriculture (USDA). One bag contains 60 kgs of coffee.  A slight increase in arabica output is likely to be offset by a small dip in robusta production as rising inputs costs are expected to hit yields. In 2012-13, the production of Robusta accounted for nearly 70% of the total coffee production. Indian producers are gradually shifting to robusta production because of its ability to offer high disease resistance and less labour.

The coffee production is pegged at 5.25 million bags for 2012-13 marketing year ending September 2013, as per Coffee Board's post monsoon estimate. The quality of beans in Arabica growing regions were affected due to unseasonal sporadic rainfall during the beginning of the harvest in January-February months followed by prolonged dry weather from mid-March.

India accounts for about 4% of world coffee production and exports. The production is mostly confined to the southern states of Karnataka, Kerala and Tamil Nadu. The Indian growers are gradually shifting towards replanting to replace their ageing plantations at an annual rate of 2-3 percent per year which leaves a difference of approximately 40,000 ha between harvested and planted area.

Peaking from March to May the new-crop arrivals normally begin at the end of December. The arrivals during the month of April were however slow. With the objective of providing economic opportunity to low income residents of rural areas and afforestation, the cultivation of coffee is being promoted in tribal regions of Andhra Pradesh, Orissa, and the North-Eastern states.


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