MUMBAI, June 13 (Reuters) - Prices rose at the Indian Coffee Trade Association auction on Thursday on higher export demand and low arrivals, traders said on Friday.
“Arrivals have now almost stopped due to monsoon, but export demand is increasing,” said a Bangalore-based trader, who did not want to be identified.
India’s coffee exports rose 3.6 percent during the first five months of 2008 on good export demand from European countries and a weak rupee, a Coffee Board official told Reuters on June 2.
Robusta parchment coffee on offer received good support from the exporters and prices were higher by 75-100 rupees per 50 kg, he said.
Robusta is more tolerant to warm conditions than arabica and constitutes about 65 percent of India’s coffee output.
Demand from European countries is quite strong as arrivals from Brazil are yet to start, said another trader.
Harvesting in Brazil, the world’s largest producer and exporter, starts at the end of June and continues through July.
Total quantity on offer was 208 tonnes, an auctioneer said.
The country produces only 4 percent of the world’s coffee, but exports 70-80 percent of its output.
Following were the prices quoted for 50 kg bags in rupees.
Grade Average price
BBB 4,350 (Reporting by Debiprasad Nayak, editing by Prem Udayabhanu)