Thursday, August 9, 2007

Tight Stocks Likely To Encourage Coffee Prices

Kochi: Coffee output in the country is likely to decline short of the projections made by the Coffee Board mainly because of weather related problems and severe infestation of white stem borer in Arabica. According to Coffee Board statistics, the post blossom estimation for 2007-08 is that the total output will come to 2.91 lakh tonnes including of 1,00,750 tonnes of Arabica and 1,90,250 tonnes of Robusta. Heavy downpour in June/July in the Madikeri (Coorg) region in Karnataka has led to dropping of young berries of both arabica and robusta. As a result, there could be a decline in production by 10-15 per cent in this region. Besides, the stock position is tight.

The growers could liquidate all their loan liabilities if the current prices were maintained for another two years. The growers ignored the plantations when the prices were at rock bottom for some years in the past. Since the prices have moved up now, they had resorted to farm management practises such as pruning, applying fertilisers besides replanting the damaged plants so as to increase the productivity. The world output this year is estimated at 118 million bags as against the projected consumption of 120 million bags.

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