The main harvest for robusta coffee beans has kicked off in Indonesia's Sumatra island, but sales are slow as buyers are waiting for prices to fall further and for better quality coffee beans.
Deliveries of robusta coffee beans from plantations to Bandar Lampung, the capital of Sumatra's Lampung province averaged 500 tonnes a day this week, compared with 100 tonnes a day this month as some plantations have begun harvesting. "Demand is slow as buyers are waiting for better quality beans which usually come out as the main harvests peaks," said a dealer with a foreign trading firm in Bandar Lampung, Indonesia's main port for robusta coffee exports.
The dealer said sales would be more active as more coffee beans came in with the main harvest rolling on. The main harvest of robusta coffee used in instant coffee in Sumatra Island starts in March and peaks in May-June.
The provinces of Lampung, South Sumatra, and Bengkulu in the southern part of Sumatra Island account for three-quarters of Indonesia's total coffee output. Easing London robusta futures from multi-year highs also dragged down local prices amid slow demand. Prices of robusta beans collected from merchants fell to 18,500-20,250 rupiah a kilogram this week, from around 23,800-25,500 rupiah a kg this month.
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