Prices moved up at the Indian Coffee Trade Association auction on
Thursday on a tight supply situation and good export demand, traders
said on Friday.
"Supply situation is tight in the market as harvesting has already
ended in April," said a Bangalore-based trader, who did not want to be
identified.
In India, robusta arrivals start in February and continues through
April, while arabica harvesting is from December to February.
Robusta parchment received good support from exporters and prices were
higher by 100-150 rupees per 50 kg, while robusta cherry prices were
higher by 50-100 rupees, the auctioneer said.
Robusta is more tolerant to warm conditions than arabica and
constitutes about 65 pc of India's coffee output.
A rise in global prices and demand from European countries also
supported the market, said another trader. The robusta September
contract in London rose by $49 to $2,258 a tonne in the last one
week.
Total quantity on offer was 192 tonnes and about 73 tonnes were sold,
the auctioneer said. India's coffee exports rose 3.6 pc during the
first five months of 2008, according to the Coffee Board.
It exports mainly to Italy, Germany and Russia. The country produces
only 4 pc of the world's coffee, but exports 70-80 pc of its output.
Following were the prices quoted for 50 kg bags in rupees.
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