Indian coffee prices, ruling above global rates, are expected to ease marginally from January as the new crop arrives, traders said on Thursday. Arabica is being quoted at 102 rupees per kg, around 5 rupees ($0.13) higher than international prices, while robustas are higher by 2 rupees, Milan Shah, managing director of leading exporter Jayanti Group, told Reuters.
"Prices have been higher, but I do not believe they are going up further and there will be parity by January, when the new crop starts trickling in," Shah said. India sells 70-80 percent of its output despite producing only 4.5 percent of the world's coffee. Trade and government officials are trying to promote local demand to reduce reliance on exports, but without much success. Next year's crop is expected to be about the same size as 2007's so the drop in prices will not be substantial, said Anil Kumar Bhandari, former president of the United Planters' Association of Southern India.
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