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Abstract
The price realisation of coffee depends on the international market as 70 percent of the coffee produced in the country is exported. This paper analyses the performance of coffee exports from India for a period of 1996-97 to 2010-11. It is found that Italy is the strong partner with four percent compound growth rate. Ukraine and Finland are the small importers. Exports grew at 38 percent and 14 percent respectively. The exports to USA, Russian Federation, Germany and Japan declined. The markov chain analysis indicated that Italy is retaining 50 percent of the market share of the previous year and Japan, Russian Federation and Germany retained 80 percent, 39 percent and 32 percent respectively. USA, Greece, Spain, Belgium and other countries are not loyal. This study reveals the strategies to diversify India's coffee exports by increasing India's exports to the loyal importers and to identify new markets.
Key words: Export Performance, Indian Coffee.
Coffee industry has made significant contribution to the Indian economy during the last 50 years. Indian coffee has created a niche for itself in the international market particularly Indian Robusta which is highly sought after for its blending quality. Arabica coffee from India is also well received in the International market. There are approximately 250,000 coffee growers in India; 98 percent of them are small growers. India exports coffee to over 50 countries. According to ICO and Board estimates, Coffee exports during 2009-10 were 1.96 lakh MT accounting for 4.14 percent of global exports. Almost 70 percent of the country's coffee production is exported. 30 percent of Indian coffee is exported to Italy. 70 percent is exported for Germany, Russian federation, Spain, Belgium, Slovenia, United States, Japan, Greece, Netherlands, and France. The value of total exports from India during 2009-10 was ?3732 crores and the unit value realization was ? 105638 per tonne. 2001 to 2003 was considered to be bad years, during which period the unit value realization from exports plummeted to ? 50,000 per tonne. Too much dependence on export market is also not desirable especially in the long run. Alternatively, in addition to exports, the vast untapped domestic market needs to be focused. The all India productivity of Arabica during 2009-10 was 592 kgs/hectare and Robusta...