Commodity Primer - Coffee the Stimulant

The Financial Express - Commodity Watch

What do we know about coffee and what are the popular varieties of coffee?

Coffee is a world famous beverage and is widely drunk in almost every part of the world. There are around 25 varieties of coffee known to the world. Coffe Arabica and Coffea Robusta are the two most commonly cultivated species of coffee widely used throughout the world.

What is the global coffee production per annum? Which are the world’s major producers of coffee?

The world production of coffee is around 6 million tonne per annum. Brazil (33.16%), Columbia (11.65%), Vietnam (10.61%), Indonesia (5.97%), Mexico (4.59%) and India (4.60%) are the world’s major coffee producers contributing to around 70% of the total coffee produced in the world.

Which are the major consumers of coffee in the world?

The US, Canada, Japan. Germany, Italy, UK, Poland and Spain are the major consumers and importers of coffee. India consumes around 30% of its total production. The Indian consumption of coffee is also increasing with time.

Which are the major coffee growing regions in India?

Chikmagalur, Coorg and Hassan in Karnataka, Wayanad, Travancore and Nelliampathy in Kerala, Pulneys, Nilgiris, Shevroys (Salem) and Anamalais (Coimbatore) in Tamil Nadu are considered as the traditional coffee growing regions in India whereas the non-traditional areas include the eastern states of Andhra Pradesh and Orissa .The north-eastern states of Assam, Manipur, Meghalaya, Mizoram, Tripura, Nagaland and Arunachal Pradesh are other coffee growing regions in the country.

What is the market scenario for Indian coffee?

India is the world's fifth largest producer of coffee, producing around 3 lakh tonne annually. Indian coffee is considered to be one of the most stimulating coffee in the world, being mild in nature i.e. having a low acid content. India is the only country, which grows all of its coffee under shade. India currently exports about 70% of its total coffee production to around 44 countries across the globe.

What are the factors affecting the market for coffee?

The size and availability of coffee stocks worldwide, changes in coffee consumption pattern governed by factors such as standard of living and cultural acceptability, availability and prices of coffee substitutes like tea and cocoa are the factors apart from the climatic factors which determines coffee prices.

—Courtesy - MCX Training


Posted by bean at 4:28 PM

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