Dynamics of coffee marketing and export : an agribusiness approach
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UASD
Abstract
In India, Coffee occupies a pride position among plantation crops grown. The
investigation was conducted in Karnataka state with overall objectives of studying dynamics
of coffee marketing and export from India. The secondary data were collected mainly from
Coffee Board of India, Bangalore and primary data from 30 coffee curing units of
Chikmagalur, Kodagu and Hassan districts. The analytical techniques included trend analysis,
co-integration technique, ARIMA, CAGR, NPC, Markov chain and descriptive statistics.
The results revealed that, Arabica coffee growing regions witnessed declining trends
in area, production and productivity except in non-traditional areas. Annual increase in price
of Arabica and Robusta coffee was highest at ICO and similar trends witnessed in case of
domestic prices during the study period. An international coffee price determines Indian
coffee prices to a greater extent for both Arabica and Robusta coffee but not the other way
round. The wholesale and retail prices of seed and powder coffee in Hyderabad and Chennai
markets heavily depend on Bangalore market prices. Chikmagalur is the lead market for farm
gate prices of uncured coffee as it influences the rest of farm gate markets. The forecast
prices shown an increasing trend in the next months in different markets studied. Robusta
cherry coffee forms lion share in export market from India both in quantity and value terms.
Coffee exports in terms of quantity and value terms increased at the rate of 1.60 and 12.10
per cent per annum respectively, during the study period. Italy is the most competitive
destination for major types of coffee in India. Italy and Germany are the most stable
importers of Arabica coffee and Robusta parchment coffee with greater retention of previous
imports. Russian Federation is the most competitive and stable destination for export of
Instant coffee from India.
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