India coffee prices rise at auction on demand

MUMBAI, Jan 12 (Reuters) - Prices at the Indian Coffee Association's Friday auctions showed some improvement as domestic and external demand picked-up, traders said on Monday.

"Exporters as well as the internal traders were active in their purchases," said a trader from Bangalore.

New season arabica plantation premium grades such as PB and A generated demand from overseas buyers. The varieties rose 150-175 rupees per 50 kg, the Bangalore trader said.

However, the new season arabica cherry grades on offer sold at current price levels, he added.

In India, arabica coffee arrivals started in November and will continue through till February, while robusta arrivals are expected to start from mid-January.

The old season arabica plantation coffee varieties sold at current price levels whereas robusta cherry varieties received strong support from domestic buyers, another trader said.

Arabica is mainly used in premium coffees, while robusta is typically blended with arabica beans for a lower-cost option for brewed coffee, or processed into instant coffee.

Total quantity on offer at the auction was 425.09 tonnes of which 108 tonnes were sold, an auctioneer said.

Following were the prices quoted for 50 kg bags in rupees.