INDIA - Coffee region gets less rain, but recovery expected

INDIA - Coffee region gets less rain, but recovery expected

The area under coffee has seen an upward trend in India, with areas from non-traditional regions in Andhra Pradesh and Orissa being added.

“The area under coffee is pegged at 380,000 hectares (ha) in the current crop season, 10 per cent higher than the production area in the last three years,” said Jayarama, director (research) of the Coffee
Board.

The present area under coffee cultivation in unconventional regions like Andhra and Orissa was 46,000 ha, he added.

However, close to 70 per cent of all output comes from Karnataka, followed by Kerala and Tamil Nadu. Non-traditional areas like Andhra and Orissa contribute around four per cent. The Coffee Board says Karnataka
alone is expected to produce 219,625 tonnes in the current crop season,
of the total output of 308,000 tonnes.

Experts feel the addition of area is more in the Robusta variety than in Arabica. “Most of the gains in area in recent times is for Robusta, as planters are fetching a good crop with the desired price level from
buyers for this variety,” said A Nanda Belliappa, a member of the Board
and promoter of Suryakiran Estates. Inability to control the white stem
borer in the Arabica variety, with uncertainty on price, has discouraged
planters to go for this variety, he said.

Presently, there has been deficient rainfall in the coffee-growing region of southern India, raising concern over production. However, “that will be compensated during August and September”, Jayarama said.
He said output would not be impacted much.

Traders and analysts had similar sentiment.

“There was a dry spell in the coffee growing zone in the first week of July. However, things have improved in the last two-three days and is expected to compensate the deficit,” said Chowda Reddy, an analyst with
JRG Wealth Management.


Source: Business Standard

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