The Hindu Business Line : Global coffee prices hardening

THE firming prices in September and October continued into November, confirming the break in bearish trend in the global coffee market of the past three years.

The monthly indicator of the ICO composite indicator price rose by 8 per cent in November to 54.69 cents per pound compared with 50.79 cents in October, the highest monthly average since October 2000.

Despite hardening of prices for the third consecutive month, the crisis sparked by low price levels continues to have negative impact on the economy of many exporting countries, the International Coffee Organisation (ICO) said.

Supply factors continue to influence developments in the coffee market.

While global availability (production plus world stocks) remains unchanged at 150.7 million bags for crop year 2001-02, the estimate for crop year 2002-03 is 159.8 million bags.

Production in crop year 2001-02 aggregated 109.8 million bags, down from 112.6 million bags in the previous year.

Based on figures available, ICO has estimated that total production in crop year 2002-03, which commenced on October 1 in majority of the countries, will be of the order of 120 million bags, a rise of approximately 9 per cent over previous year.

According to ICO, India's coffee exports during crop year ended October 2002 was 3.41 million bags, down some 8 per cent from 3.70 million bags of 2000-01. In the search for solution to the coffee crisis in exporting countries, a number of political turning points have been noticed.

Send this article to Friends by E-Mail
Comment on this article to BLFeedback@thehindu.co.in

Stories in this Section
Rubber steady

Trade for free import of tea-bagging machines

Kerala drawing up action plan for banana processing

Trying to check rates!

Lint prices rule firm

Strike outside Kinfra park hampers work

Global coffee prices hardening

Prices fall at ICTA auction

`Introduce soya products in mid-day meal scheme'

Strengthen agri-marketing to save growers