After a pause of nearly two years, premiums for Indian robusta parchment coffee have risen and now exceed $1,000 per tonne over London terminal prices. This is primarily due to producers holding back their supply in anticipation of higher pricing and a lower than expected production of robusta parchment. Pricing differences for the Indian robusta parchment AB presently range between $1,100 and $1,200 per tonne over LIFFE terminal prices, while they are between $375 and $400 per tonne for the robusta cherry variety.
Indian robusta parchment typically sells for between $750 and $1,000 per tonne. We experienced a remarkable decline over the past few years, falling to unrealistically low levels of $100–200, which was unjustifiable due to an excess of parchment. We are back and operating at our previous levels now. Although we are somewhat above average, growers are not selling. Ramesh Rajah, president of the Coffee Exporters Association, stated that a few trade houses that are guilty of their actions are compelled to cover.
Indian robusta parchment typically costs between $750 and $1,000 per tonne. Prices have dropped significantly over the last three years, dropping to absurdly low ranges of $100 to $200. The surplus of parchment was the cause of this collapse. We are operating at our previous levels now that we are back. Despite the fact that we are somewhat above normal, growers are not selling. According to Ramesh Rajah, president of the Coffee Exporters Association, a small number of trade houses that are accountable for their behaviour are compelled to cover.
United Planters’ Association of South India (UPASI) President Jeffry Rebello credits the increase in premiums to a number of elements, including a decline in robusta parchment production, a weakening of the rupee, and brisk London and New York markets. Robusta output is down, according to Mahesh Shashidhar, Head of the Karnataka Planters’ Association, and as a result, prices have been stabilising. With almost 90% of growers finishing the picking, the harvest is almost finished.