According to commerce ministry estimates, coffee prices for the crop year 2011-2012 should remain stable. This trend is mainly attributable to generally sluggish production and a constantly increasing consumption over the last three years.
Brazil is expected to have an off-year with some 47.2 million bags said additional secretary in the Commerce Ministry Vijay Laxmi Joshi at the 53rd annual coffee conference of Karnataka Planters Association and United Planters Association of South India (KPA-Upasi)
However, next crop year is expected to deliver greater overall production thanks to producers taking better care of their crops and Brazil estimated to deliver an all time high of 60 million bags in its on-year. Vietnam and Colombia are also expected to have a strong showing, which will have a pronounced effect on prices, stressed the minster.
Domestic coffee consumption has been growing at the annual rate of 5-6% reaching 100,000 tons in the 2009-2010 crop year. High global prices have had little domestic effect so far. The world production during the current year is expected to reach 129.4 million bags, a 3% fall from last year’s crop of 133.6 million bags. Domestically, production should see a better-than-expected level of 302,000 tons.
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