The rise was partly due to a good harvest and the weakening local currency, which has been weak against the dollar in recent months, and hit a record low of 2,710 on June 30 against the U.S. currency before the central bank stepped in to prop it up.

Uganda's June coffee exports rose to 370,924 60-kg bags, surpassing the 265,000 bags forecast for the month of June, said the source at UCDA.

Coffee export earnings for the month of June more than doubled to $53 million from $23.03 million in June 2010.

"This is the highest recorded monthly volume in almost 10 years. The rise in volume is attributed to the good harvesting season southwestern coffee regions (ongoing), which was given support by good farm-gate prices," the source told Reuters.

"The rise in prices was as a result of devaluation of the shilling against dollar and a rise on international market."

Harvesting is underway in the south and southwestern parts of the east African country and both regions account for 45 percent of the country's total annual coffee production.

Copyright Reuters, 2011