Coffee exports from India have fallen by 10.3% to 308,916 tons in FY13 compared to 344,356 tons in FY12 due to decreased demand from the European Union and the US.
However, coffee bean exports have increased by 4.3% to 100,088 tons during January-March 2013 compared to 95,951 tons in the same period of 2012.
The country exports most of its coffee to European nations such as Italy, Germany, Russia, Belgium and Spain. The robusta coffee from the country is used to make of instant drinks and espressos across the globe.
Coffee Exporters' Association of India president Ramesh Rajah was quoted by Business Standard as saying that coffee buyers from European nations like Italy, Spain, Greece and Portugal are seeking cheaper coffees resulting in decreased demand for Indian coffee.
"Though we had expected a decline in exports in the range of five per cent this year, the final figure for the year is much higher," Rajah added.
"The exports during FY13 would have been much lower, but for the pick up in demand during February and March.
"The robusta variety saw higher shipments during the last two months of the fiscal, while arabica has seen a declining trend as Brazil and Indonesia have pumped up volumes."
The value of coffee exports witnessed 2.5% decline to INR47.15bn ($868.32m) during the reporting period compared to INR48.37bn ($890.79m) in the prior year. However, the unit value realization increased by 8.6% to INR152,623 ($2810.74) per ton during FY13.
Arabica coffee prices have decreased by 25%-26%, which is lower than production cost for coffee growers.
Rajah told the news website that the board seeks to reach 300,000 tons mark with plus or minus 10,000 tons in 2013-14 fiscal year.
"We will be happy if we can export higher than last fiscal. We will have to see if there is any assistance coming on our way from the new Exim Policy," Rajah added.
