Brazil’s disaster in the coffee market, India’s opportunity

Desk report:  Brazil was the largest producer and exporter of coffee in the world market. But in the Corona era and natural disasters, Brazil is losing this show. Brazil’s depression is not cutting in any way. In the export trade, Brazil lags far behind in coffee production and exports. India wants to take advantage of this opportunity. India has had a bumper crop of coffee this year. At the time of the Corona, the country was leaning towards export trade. India wants to bring back the old tradition by occupying its place in the world coffee export.Heavy snowfall in Brazil has disrupted coffee cultivation. There are fears of a global supply crisis for coffee. As a result, the price of the beverage product is gradually increasing in the world market. In such a situation, India has decided to increase coffee exports.According to the Coffee Board of India, the country has produced 3 lakh 34 thousand tons of coffee in the 2020-21 season. Compared to the previous season, the production has increased by 12 percent. About 80% of the coffee produced in India is of Robusta variety. In the 2020-21 season, robusta production has increased by 11 percent to 235,000 tons. However, Arabica coffee production was limited to 90,000 to 100,000 tons.
India exports about 80 percent of its coffee. From January to August this year, the country exported 2 lakh 26 thousand 17 tons of coffee. Compared to last year, exports have increased by about 10 percent this year. India mainly exports coffee to Europe. Among the European countries, Belgium, Italy and Germany are the largest exporters of coffee to India.The main goal in pre-Coronation India was to export restaurant-based coffee. But now the impact of the Corona epidemic has greatly reduced the amount of coffee consumed outside the home in European countries, especially in restaurants or coffee shops. At that time people were more likely to buy coffee at home through home delivery. Ramesh Raja, president of the Coffee Exporters Association of India, said most cafes in European countries are slowly starting to open. The effects of the epidemic are also diminishing. This year, the Indian government has set a target of কোটি 1 billion for coffee exports. Achieving this goal will be a bit difficult.He added that India exported the least amount of coffee last year in recent years. At that time 3 lakh 8 thousand 36 tons of coffee was exported at the price of dollar. Exports fell by 12 percent compared to the previous year.
According to coffee exporters, the two main exporters of Robusta coffee are Vietnam and Indonesia. These countries have to bear more shipping costs than India for coffee exports to Europe. This is giving India an advantage in the export market. Apart from this, India is getting the benefit of exporting coffee in the containers in which raw cashew nuts are imported.