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Coffee

1. Introduction

Coffee is one of the world's most popular drinks. Among Plantation crops, Coffee has made significant contribution to Indian economy during the last 50 years. Although India contributes only around 4% of this world production, Indian Coffee has created a niche for itself in the international market; particularly Indian Robusta which is highly preferred for its good blend up quality. Arabica Coffee too is well received in the international market. Coffee beans are not beans at all in a botanical sense. They are the twin seeds of a red (sometimes yellow) fruit that grows to about the size of the tip of our little finger. Growers call these coffee fruit coffee cherries. Before the coffee can be shipped and roasted, the bean or seed must be separated from the fruit.

2. Coffee – A World View

Coffee is mainly produced in Brazil, Columbia, Mexico in African Countries like Ethiopia, Uganda, Honduras, Castalia, Peru etc. and also in Vietnam, Indonesia and India. In world production Brazil is on top and India stands at 7th /8th position. More specifically, in producing coffee India ranks 2nd in Asia and 8th in the world. Coffee is consumed as a refreshing drink world over in various forms. European, African and South East Asian countries are the major consuming countries.

Brazil, Vietnam and Columbia are the major supplier in the Global market, hence command the world market. Any change in production pattern of Coffee in these countries, influence the international prices. The detail of production, consumption and Import-Export pattern of past five years of major Coffee producing countries mentioned in Annexure I.

It may be seen from the Annexure -I that excepting Columbia, productions in these Countries have almost stagnated barring stray incidence of variance in some of the countries. Columbia and Indonesia despite being major producers and leading exporting countries; have been regular importers also. Incase of India’s position, a significant trend of fall in exports and increase in domestic demand has been emerging while production is almost stagnant during the last five years.

2.1 Internationally well known grades of Coffee :
There are about 25 major species within Coffea, but the typical coffee drinker is likely to be familiar with two: Coffea arabica and Coffea canephora (robusta). Arabica accounts for 75% of the worlds coffee production with the top 5% qualifying as Specialty Coffee. Robusta accounts for 25% of the coffee production.

Coffea Arabica: Brazil and Colombia, the largest growers of Arabica coffees. Arabian coffees are grown mainly in the tropical highlands of the Western Hemisphere. Arabica coffees are described either as "Brazils" (because they come from Brazil) or as "Other Milds" which come from elsewhere. Typica and Bourbon are the two best known varieties of C. Arabica, but many strains have been developed, including Caturra (from Brazil and Colombia), Mundo Novo (Brazil), Tico (Central America), San Ramon and Jamaican Blue Mountain.

The Arabica plant is typically a large bush with dark green, oval-shaped leaves that can reach a height of 14 to 20 feet fully grown. Its fruits are oval and usually contain two flat seeds. After planting, Arabica trees mature in 3 to 4 years, when they produce their first crop. The Arabica plant can continue to produce fruits for 20 to 30 years. Arabica trees prefer a seasonal climate of 59-75 degrees Fahrenheit and an annual rainfall of 60 inches.

A hybrid of Arabica, Maragogype -- called the elephant bean because of its large size -- originated from the Maragogype County in the Bahia state of Brazil. Today it is grown in Guatemala, Mexico, Nicaragua, Honduras, El Salvador, Brazil and Zaire.

Coffea canephora (Robusta): Robusta, which can grow up to 32 feet in height as a shrub or tree, has a shallow root system. The fruits are round and take nearly a year to mature. The seeds are oval and smaller than the Arabica beans. Robusta coffee is grown in West and Central Africa, throughout Southeast Asia, and parts of South America including Brazil, where it is known as Conilon.

Robusta trees produce their first crop 3 to 4 years after planting and they remain fruitful for 20 to 30 years. The trees prefer equatorial conditions with temperatures between 75 to 85 degrees Fahrenheit and an annual rainfall of 60 inches. Flavors of Robusta are less mild than the Arabica coffees.

Regarding Quality: Prior to liberalisation, the scope for achieving significant quality price differentials for growers was lost under the Coffee Board's pooling system, in which different growers' coffees were bulked. This reduced the incentives for farmers to improve coffee quality beyond the minimum requirements.
Since liberalisation, the quality of some plantation production has improved significantly as differentials have emerged. However, positive quality differentials have been slower to emerge with smaller growers. While Indian arabica is of a good overall quality, international buyers can easily substitute with other coffees, especially in times of a good Brazilian harvest. However, India produces some of the world's best robustas, particularly the washed. India has the possibility to market many of its coffees as speciality, shade grown, gourmet and perhaps explore organically grown production.

2.2 Harvesting period & Varieties grown on top 10 Coffee Producing countries

Brazile :- March-October is the harvesting time of Coffee there. Notable Coffee Beans are Bahia, Bourbon Santos.

Vietnam :-Notable Beans: Vietnam specializes in Robusta production.

Colombia :- October-February and April-June is the harvesting time of Coffee there. Notable Beans: Medellin, Supremo, and Bogota.

Indonesia :- Notable Beans: Java, Sumatra, Sulawesi (Celebes).

Mexico :- In High Altitudes the coffee harvesting time is November-January and in the Low altitudes it is during August-November. Notable Beans: Altura, Liquidambar MS, Pluma Coixtepec.

India :- In India coffee harvesting time is November and February. Notable Beans: Mysore, Monsooned Malabar.

Guatemala :- Here the harvesting period of coffee is during October-January. Notable Beans: Atitlan, Huehuetenango.

Ethiopia :-In this country the harvesting period is during August-January. Notable Beans: Harrar, Sidamo, and Yirgacheffe.

Uganda :-September-December is the harvesting period here. Notable Bean: Bugisu

Honduras :- during October-March coffee harvesting takes place here.

Important Coffee producing country’s share in global production

Year	Brazil's share	Vietnam's share	Colombia's share	Indonesia's share	Mexico's share	India's share
1999	26.83%	9.59%	8.29%	5.80%	5.39%	4.24%
2000	30.35%	13.65%	9.34%	5.78%	4.27%	4.47%
2001	32.09%	11.20%	10.93%	5.63%	3.84%	4.58%
2002	42.67%	8.48%	9.01%	4.96%	3.60%	3.79%
2003	33.16%	10.61%	11.65%	5.97%	4.59%	4.60%

3. Coffee in India

3.1 Growing Area :-

Most Indian coffee is grown in the southern states of Karanataka, Tamil Nadu, and Kerala. India's coffee growing regions have diverse climatic conditions, which suit for cultivation of different varieties of coffee. Some regions with high elevations are ideally suited for growing arabicas of mild quality while those with warm humid conditions are best suited for robustas. Again, the vast spectrum of varieties of arabica and robusta available in India, express distinct quality features in the cup when grown under different agro-climatic conditions. In India production of Robusta is more i.e. around 62-65%, where as production of Arabica is considered around 35-38%. In some regions, marginal and tribal farmers grow coffees without any external inputs in an organic way. All these conditions make India as a supermarket for a wide variety of coffees to offer to the diverse needs of the specialty coffee market. Karnataka accounts for 53 percent of the planted area (59 percent planted to Arabica, 41 percent to Robusta). Robusta is dominant in Kerala and Arabica in Tamil Nadu.

Coffee is a major export driven commodity in the country with nearly 70% of the total production being exported. Until recently, the promotional efforts for Indian coffee in the export market were of generic in nature, with few Specialty types like Monsooned coffee, Mysore Nuggets Extra Bold and Robusta Kaapi Royale. The generic promotion has no doubt yielded positive results with assured market for Indian coffee in the Europe, USA and Japan. But the returns are greatly influenced by boom and bust cycles in prices, witnessed in the global market owing to shortages and surpluses.

3.2 Harvesting :-

In India Coffee harvesting time is November and February.
Coffee is processed in two ways:
(a)wet processing by which plantation or parchment coffee is prepared, and
(b)the dry method by which cherry coffee is prepared.

For the preparation of both parchment and cherry types of coffee, picking of the right types of fruit forms an essential part of processing. Coffee is picked when the fruits are just ripe. Under and over-ripe fruits cause deterioration in quality, the former gives "immature beans" and the latter "foxy" coffee. They may be dried separately for making cherry coffee. The bags used are frequently washed and dried.

3.3 Coffee varieties in India :-

High quality coffee is termed as specialty coffee that differs from normal coffee with relevance to visual quality or cup or both. Specialty Coffees are getting increasingly popular in the world coffee market. Today, consumers around the world demand the best coffee. Planters in producing countries are now developing finer strains of coffee to the customer requirement of the gourmet coffee drinker.

India offers several varieties of specialty coffees that are popular in the West. Continuous research by Indian scientists has helped identity better strains that will make finer coffees with added flavour profiles, in both Arabica and Robusta varieties.

Monsooned coffee
Monsooned coffee has a story to tell. This coffee is one of the most famous from Southern India. Traditionally it would take months for this coffee to travel from India to Europe, during which time it was exposed to heavy humidity and sea winds. It was the effects of this journey that 'aged' the coffee and changed the colour of the green bean to a pale yellow. It also gave the coffee its rich, smooth-bodied and spicy flavour and intense aroma.A new kind of coffee was born - Monsooned Coffee.

Even today, India offers the same golden quality Monsooned Coffee. This ageing process has been replicated at the coffee's origin. During the south west monsoon season (June - August) the coffee is left in an open warehouse for several days to take in dampness, and regularly raked for even exposure. After this the coffee is put in sacks and left for several weeks, still in the open warehouse, with the monsoon winds blowing through. The coffee is dried fully after the monsoon (September - October) and shipments start in November. This is a unique way of processing coffee.

The Monsooned Coffee still has the monsooned flavour, mellow taste and golden look. Consumers in Scandinavian countries love it for its special colour and flavour.
Monsooned Malabar is a dry-processed coffee that has been exposed to wet monsoon winds (not rain) in open-sided pavilion warehouses before shipping.

Following are the main grades monsooned coffee:

Monsooned Malabar AA
Monsooned Basanally
Monsooned Robusta AA

Most Malabar-variety coffee is grown in the southern parts of India. The higher grades of this bean are “monsooned”, a process mean to replicate the long period of humid aging the green beans underwent as were exported by ship. Nowadays, the beans are spread in open sided aging sheds after harvest and held for 7-8 weeks through the early summer monsoon season. Its aroma and color increases.
This Monsooned Malabar coffee is the Top Grade in the line of Monsooned Arabicas.

Mysore Nuggets Extra Bold
This coffee is a premium coffee that represents the best quality coffee from India. The beans are very large, uniform blush green in color with a clean polished appearance. In cup, the coffee exhibits full aroma, medium to good body, good acidity and fine flavor.

Arabica Plantation Coffee (Washed coffee) grown in the Mysore, Coorg, Biligiris and Shevaroys regions.

Robusta Kaapi Royale
This coffee is prepared from Robusta Parchment AB from the regions of Mysore, Coorg, Wynad, Shevaroys, Pulneys and Barbabudans.
The beans appear to be bold, round with pointed ends and gray to bluish gray in colour. This cup ensures full body, soft, smooth and mellow flavour.

3.4 Production, Consumption and Exports :-

India's Coffee production, consumption & exports (1985-2001)

YEAR	PRODUCTION	CONSUMPTION	EXPORTS	OPENING STOCKS
YEAR	(60 KG BAGS)	(60 KG BAGS)	(60 KG BAGS)	(60 KG BAGS)
1985	1571000	538333	1695000	1878658
1986	3618000	1301000	1587000	1216835
1987	1941000	815000	1387000	1946722
1988	3033000	1066667	1918000	1686000
1989	1785000	667000	2025600	1734000
1990	2829000	867000	1510687	826000
1991	3000000	1000000	1727359	1277000
1992	2818000	775000	1816341	1253000
1993	3448000	1000000	2101593	1479000
1994	2984000	1000000	2496085	1020000
1995	3727000	1000000	2469337	934000
1996	3469000	1000000	3119736	89000
1997	4729000	916000	2640111	82000
1998	4372000	833000	3487014	210000
1999	5457000	916000	3612690	323000
2000	4526000	917000	4440570	364000
2001	5011000	1134000	3362370	354000
2002	4667000

source: http://www.indiaonestop.com/ Updated on November 17, 2003

Overall pattern of consumption, exports and surplus remains 30%, 60% and 10% respectively, which further varies depending upon international market demand and seasonal cycle.

4. Coffee Grading

Arabica and Robusta are primarily classified as washed (also known as parchment or plantation) and unwashed (natural) reflecting the processing method. They are further classified into 25 grades based on the size of beans and the number of imperfections. The superior grades are Arabica Plantation A, Arabica Cherry AB, Robusta Parchment AB and Robusta Cherry AB. There are also three special preparations of coffee to serve the gourmet market, namely Mysore Nuggets EB, Robusta Kapi Royale and Indian Monsooned coffee.

Grade 1: Specialty Grade: no primary defects, 0-3 full defects, sorted with a maximum of 5% above and 5% below specified screen size or range of screen size, and exhibiting a distinct attribute in one or more of the following areas: taste, acidity, body, or aroma. Also must be free of cup faults and taints. Zero quakers allowed.
Moisture content between 9-13%.

Grade 2: Premium Grade: Same as Grade 1 except maximum of 3 quakers. 0-8 full defects.

Grade 3: Exchange Grade: 50% above screen 15 and less than 5% below screen 15. Max of 5 quakers. Must be free from faults. 9-23 full defects.

Grade 4: Standard Grade: 24-86 full defects.

Grade 5: Off Grade: More than 86 full defects.

[Source: http://www.coffeeresearch.org/coffee/grade.htm
Green Coffee Classification System Poster from the Specialty Coffee Association of America.]

Bean Type                             Grade
Arabica                              Cherry PB, A, B, C. AB. Bulk
Plantation                           PB, A, B, C, Bulk
Robusta Parchment              Parchment PB, A, B, C, Bulk
Robusta cherry                    PB, A, B, C, Bulk, A, AA
Monsooned                         Malabar, Basanally, Arabica Triage

[Source: Hindustan Leaver Ltd.- Export Division]

4.1 SPECIFICATIONS OF MAJOR GRADES OF INDIAN COFFEE :-

Grade	Screen/mm	Attributes	Tolerance
Arabica Washed
Plantation A	17/6.65	90% by weight shall stand on screen No 17. Clean garbled	*Pea Berry (PB) maximum 2% and triage 2% (by weight)
Plantation B	15/6.00	75% by weight shall stand on screen No. 15 and not more than 1.5% shall pass through Screen No 14. Clean garbled.	PB maximum 2% and triage 3% free from blacks or damaged beans
Plantation C	14/5.50	Minimum 75% by weight shall stand on screen No. 14. Not more than 1.5% by weight shall pass through screen No. 13	Free from Blacks. Shall consist of triage, light boat shaped and spotted beans
Plantation Bulk		Ungraded and ungarbled
Arabika Unwashed
Cherry AB	15/6.00	Minimum 90% by weight shall stand on screen No. 15. Not more than 1.5% by weight shall pass through screen No. 14. Clean garbled.	PB upto 2% and triage upto 3% (by weight)
Cherry C	14/5.50	Minimum 75% by weight shall stand on screen No. 14 but 100% shall stand on Screen No. 13.	Consists of triage and small whole beans, light or boat shaped beans. Not more than 2% of black/brown/bits.
Arabica Cherry Bulk		Ungraded and ungarbled
Robusta Washed
Parchment AB	15/6.00	90% by weight shall stand on screen No. 15. Maximum 1.5% by weight can pass through screen No. 14. Clean garbled	PB 2%, triage 3% (by weight)
Parchment C	14/5.50	75% by weight shall stand on screen No. 14 but 100% over screen No. 13.	BBB 2%. Shall consist of triage, light beans, boat shaped and spotted beans
Parchment Bulk		Ungraded and ungarbled
Robusta - unwashed
Cherry AB	15/6.00	90% by weight shall stand on screen No. 15. Maximum 1.5% by weight can pass through screen No. 14. Clean garbled.	PB 2%, triage 3% (by weight)
Cherry C	14/5.50	75% by weight shall stand on screen No. 14 but 100% shall stand over screen No. 13.	BBB 2%. Shall consist of triage, light beans, boat shaped and spotted beans
Cherry Bulk		Ungraded and Ungarbled
Specialty Coffees		Monsooned coffees,
		Mysore Nuggets Extra Bold,
		Robusta Kaapi Royale

*Pea berry, a kind of a coffee bean or grain which grows single, and is round or pea-shaped.

5. Coffee Marketing in India / Government Policy

Prior to liberalization, coffee marketing in India was carried out by the Coffee Board under a system in which producers' coffee was pooled and auctioned in two separate auctions, one for the domestic market and one for the export market. After harvest, washed coffee was pulped and dried, and unwashed cherry was dried and both were delivered to a curing factory licensed by the Coffee Board. On delivery, growers were paid an advance for their coffee; with the remainder following after the coffee had been sold at the auction. Because of inefficiencies in the system, many growers did not receive the final payment for their coffee until up to two years after the Coffee Board had taken possession of it.

The drive for liberalisation came from producers who were dissatisfied with the pooling system, late payments and the Government's continued imposition of export tax. All of these factors reduced the growers' price at a time when international prices were declining. Liberalisation was phased in gradually over a period of four years, starting in 1992-93, when producers were allowed to directly market up to 30% of their crop on the internal market, with the remaining 70% continuing to be pooled by the Coffee Board for auction. By 1996, the Coffee Board's involvement in marketing had been completely removed and growers were free to market their crop as they chose. The Coffee Board now concentrates on research, extension, promotion and information dissemination.

The most positive result of liberalisation is that growers now receive total payment for the coffee within days of sale, instead of the piece-meal payments under the Coffee Board's pooling system. Some problems still remain in the system, one of which is the sales tax. Producers and traders believe the sales tax creates an obstacle to efficient marketing, which reduces the price paid to growers, particularly the small growers. The sales tax (which has been reduced from 14% to 4% following liberalisation) is applicable to all transactions along the marketing chain, except at export and the transaction prior to export, which are exempt on the condition the purchase is directly connected with a prior export contract sale. Because exporters often face logistical complications in ensuring that the export contract sale is obtained prior to purchase, most exporters mark down their purchase price by the amount of the sales tax. This reduces the grower price particularly for the small growers, who, unlike many larger growers, have no possibility of directly exporting their coffee.

6. Relevancy of Coffee Futures Trading in India

One of the main impacts of liberalizations is the exposure of producers and traders to the vagaries of international price volatility. Price risk management becomes an important issue, particularly for the middle traders and exporters and also in the interest of growers. Until October 1988, exporters were not permitted to hedge on the New York or London futures markets and most had either to speculate or trade back-to-back.

Coffee is one of the most important commodities highly traded in the world market. Moreover India being the one of the leading producer of Coffee, the price of Indian coffee is exposed to high fluctuations.
Since all futures and options contracts are standardized (with delivery months and locations, quantity and grade constant), only price is negotiable. Therefore, the exchange environment allows prices to reach their natural levels - an important economic function known as price discovery.

7. International Price of Coffee.

7.1 Coffee Price Determinants:

Consequent to removal of economic clauses (quota mechanism) from the purview of the International Coffee Agreement, the global coffee market came under free trade regime since 1989. Similarly, dismantling of pool marketing operations in India in 1996 led to a liberalized marketing system. Many coffee producing countries liberalized the marketing during 1990s.In such an open market environment prices are set by the market forces. There is no one individual or a country that decides the international price of coffee.
But because coffee is produced by millions of growers all around the world, the international price of coffee depends on the world supply and demand of coffee, not just supply or demand in the local market. Some countries, such as Brazil and Vietnam and Colombia, have larger share in the total global supply. For this reason, a change in coffee production in these countries can affect the international prices.

India’s domestic coffee price moves in tune with the International price of the same. Historical data of prices that is paid to Arabica & Robusta growers in India (1982-2003) shows that there is abrupt volatility visualized in between the months of September and October since last 21 years. The reason being most of the coffee producing countries coffee harvesting time comes in October. So crop expectations from mainly Brazil, Vietnam, and Indonesia are the main propelling force in price fluctuation during October.

The supply of coffee is affected by weather conditions, the health of the coffee trees, and harvesting practices. Historically, weather has played a major role in determining world supply. For example, production increases after recovery from the 1953 Brazilian frost induced big price declines; likewise, a Brazilian frost in1975 and drought in 1985 caused a sharp drop in coffee production and similarly dramatic increases in coffee prices, i.e. in India from 73 cents/lb in September 1985 it jumped to 107 cents/lb in October and the high range continued up to September 1985.
Similarly, during 1997 hike in Arabica Coffee prices in India again visualized throughout the year; the probable reasons are prolonged strike in Brazilian port which has caused huge amount of coffee to be blocked on the dock, moreover torrential rains in Central America caused cherries to fall prematurely from the trees.

7.2 Trend in Export prices realization :

As stated in the earlier discussion that there are two major varieties traded in international market namely Arabica and Robusta.

Arabica Coffee :-
There are various interesting features in the trend of last five year in export prices of major five exporting countries like Brazil, Columbia, India, Indonesia and Mexico.

1999:
There has been wide fluctuation in Brazilian export prices varying from 57.76 cents to 96.71 cents per pounds, where as Columbian export prices witnessed lesser fluctuation range from 75.66 to 96.73 cents per pound.
However Indian export prices remain steady ranging 59 to 74 cents. It is also noticeable that Indian export price realization was the lowest during the year.

2000:

Brazilian and Mexican Coffee export prices during the year under review remained very closer; with the corresponding wide fluctuation from 46 cents to 89 cents per pound. However Columbian price ruled steady with seasonal variance.
Indonesian export price and Indian export price remained steady with seasonal fluctuation, but Indian coffee fetched lowest price in the first half of the year. In the first half of the year Brazil dominated.

2001:

There was unique trend where Columbian, Indonesian and Mexican export price were quite closer and they dominated Brazil and India. During this year Brazil coffee realized lower price. However Indian coffee export price realization was much better than that of Brazilian.

2002:

The same trend continued to this year. Columbia, Indonesia and Mexico dominated world coffee market and got the highest export sale realization. Likewise, India competed world coffee export market with Brazil closely. However Brazil export prices witnessed the lower realization during year.

2003:

Mexican Coffee fetched the highest export prices during the year followed by Columbian Coffee. Export prices of Brazilian, Indian and Indonesian Coffee remained almost closer and also steady without any wide fluctuation.

It may be presumed that Mexican and Columbian Coffee have been getting better prices in the global market as compared to other exporting countries like India, Brazil and Indonesia. The other feature of the last five years data witnesses no major cyclical or seasonal price variance as used to be there in the past. Then we may conclude that Indian Coffee Export is competing at par with Brazil and Indonesia [detail in Annexure II (A)].

Robusta Coffee :-
In case of Robusta Coffee, during the last five years, prices are in the global market ruled steady. Brazilian realized maximum export price followed by India Robusta [detail in Annexure II (B)].

Annexure I

Top ten Coffee Producing Nations
Figures are in Thousand 60 – Kilogram bags* / One bag = 132.276 pounds*
Country		Beginning	Total	Total	Total	Total	Total	Ending
/ year		Stocks	Production	Imports	Supply	Exports	Domestic	Stocks
1	Brazil
	1999/2000	11,470	30,800	0	42,270	20,164	12,800	9,306
	2000/2001	9,306	34,100	0	43,406	19,676	13,100	10,630
	2001/2002	10,630	35,100	0	45,730	24,795	13,700	7,235
	2002/2003	7,235	51,600	0	58,835	28,930	14,400	15,505
	2003/2004	15,505	33,600	0	49,105	25,600	14,900	8,605

2	Vietnam
	1999/2000	1,033	11,010	0	12,043	11,433	350	260
	2000/2001	260	15,333	0	15,593	14,667	417	509
	2001/2002	509	12,250	0	12,759	12,000	500	259
	2002/2003	259	10,250	0	10,509	9,833	500	176
	2003/2004	176	10,750	0	10,926	10,166	533	227

3	Colombia
	1999/2000	3,154	9,512	16	12,682	9,060	1,530	2,092
	2000/2001	2,092	10,500	16	12,608	9,460	1,530	1,618
	2001/2002	1,618	11,950	80	13,648	10,665	1,590	1,393
	2002/2003	1,393	10,900	95	12,388	9,870	1,595	923
	2003/2004	923	11,800	95	12,818	10,480	1,605	733

4	Indonesia
	1999/2000	486	6,660	153	7,299	5,657	1,355	287
	2000/2001	287	6,495	175	6,957	5,536	1,335	86
	2001/2002	86	6,160	134	6,380	4,729	1,465	186
	2002/2003	186	6,000	135	6,321	4,685	1,505	131
	2003/2004	131	6,050	135	6,316	4,680	1,525	111

5	Mexico
	1999/2000	0	6,193	0	6,193	5,138	1,055	0
	2000/2001	0	4,800	0	4,800	3,822	978	0
	2001/2002	0	4,200	0	4,200	3,200	1,000	0
	2002/2003	0	4,350	0	4,350	3,400	950	0
	2003/2004	0	4,650	0	4,650	3,700	950	0

6	India
	1999/2000	200	4,870	0	5,070	4,250	800	20
	2000/2001	20	5,020	0	5,040	3,702	975	363
	2001/2002	363	5,010	0	5,373	3,442	1,100	831
	2002/2003	831	4,588	0	5,419	3,201	1,155	1,063
	2003/2004	1,063	4,660	0	5,723	3,551	1,170	1,002

7	Guatemala
	1999/2000	45	4,364	275	4,684	4,234	400	50
	2000/2001	50	4,564	300	4,914	4,414	425	75
	2001/2002	75	3,530	150	3,755	3,330	420	5
	2002/2003	5	3,802	150	3,957	3,500	420	37
	2003/2004	37	3,802	50	3,889	3,450	420	19

8	Ethiopia
	1999/2000	1,311	3,833	0	5,144	2,000	1,633	1,511
	2000/2001	1,511	3,683	0	5,194	1,833	1,667	1,694
	2001/2002	1,694	3,756	0	5,450	1,939	1,700	1,811
	2002/2003	1,811	3,000	0	4,811	2,100	1,700	1,011
	2003/2004	1,011	3,250	0	4,261	1,700	1,700	861

9	Uganda
	1999/2000	71	3,097	0	3,168	2,917	80	171
	2000/2001	171	3,205	0	3,376	3,075	81	220
	2001/2002	220	3,507	0	3,727	3,153	80	494
	2002/2003	494	3,100	0	3,594	3,200	80	314
	2003/2004	314	3,200	0	3,514	3,100	80	334

10	Honduras
	1999/2000	109	3,067	0	3,176	2,825	264	87
	2000/2001	87	2,821	0	2,908	2,470	271	167
	2001/2002	167	3,098	0	3,265	2,617	386	262
	2002/2003	262	2,600	0	2,862	2,392	286	184
	2003/2004	184	2,800	0	2,984	2,484	301	199

	Other Important Coffee producing countries

	Cote d'Ivoire
	1999/2000	1,504	5,700	0	7,204	5,797	60	1,347
	2000/2001	1,347	4,333	0	5,680	4,045	62	1,573
	2001/2002	1,573	3,033	0	4,606	3,058	64	1,484
	2002/2003	1,484	2,500	0	3,984	3,453	65	466
	2003/2004	466	2,400	0	2,866	2,663	0	203

	Costa Rica
	1999/2000	1,251	2,688	0	3,939	2,174	341	1,424
	2000/2001	1,424	2,502	0	3,926	2,136	345	1,445
	2001/2002	1,445	2,338	0	3,783	2,017	350	1,416
	2002/2003	1,416	2,188	0	3,604	1,925	305	1,374
	2003/2004	1,374	2,220	0	3,594	1,950	325	1,319

	Peru
	1999/2000	88	2,571	40	2,699	2,380	230	89
	2000/2001	89	2,824	35	2,948	2,664	264	20
	2001/2002	20	2,550	0	2,570	2,360	190	20
	2002/2003	20	2,750	0	2,770	2,575	185	10
	2003/2004	10	2,850	0	2,860	2,665	185	10


	Papua New Guinea
	1999/2000	335	1,387	10	1,732	1,328	2	402
	2000/2001	402	1,041	0	1,443	1,051	1	391
	2001/2002	391	1,041	0	1,432	1,073	1	358
	2002/2003	358	1,147	0	1,505	1,076	1	428
	2003/2004	428	1,160	0	1,588	1,101	1	486
	** All 2003-04 figures is forecast, the report is on 2003 June

Annexure II (A)

Prices paid to Indian exporters of Coffee beans in US cents per lb. (Arabica)

Year	Country	Jan	Feb	Mar	Apr	May	June	July	Aug	Sep	Oct	Nov	Dec
1999	Brazil	85.6	71.3	73.7	71.4	80.8	77.1	67.2	61.9	57.8	63.1	82.2	96.7
	Colombia	93.2	90.3	91.5	90	88.4	88.4	82.4	79.9	75.7	75.7	84.5	96.7
	India	74.8	72.2	66.7	64.5	70.6	68.4	67.6	59	65.3	64.9	63.1	72.3
	Indonesia	N.A.	N.A.	N.A.	N.A.	N.A.	N.A.	N.A.	N.A.	N.A.	N.A.	N.A.	N.A.
	Mexico	96.7	93.5	90.8	78	78.2	82.7	82.5	60.3	68.3	62.7	85.1	92

2000	Brazil	89.4	80.2	80.6	74.7	72.5	63.8	60.9	56.4