India's coffee exports slipped 9.35 per cent in the calendar year of 2012 to 3.10 lakh tones, from 3.42 lakh tonnes in corresponding period of the previous year.

The production as well as exports of coffee dropped mainly due to low demand in the European markets, pest attacks and an erratic monsoon that took toll on the production of the product.

The outlook for coffee exports in the New Year also appears to be bleak, because international markets are still not giving encouraging signals.

As per some latest estimates, coffee production in 2013 will be nearly 3.15 lakh tones, against the previous post-blossom estimate of 3.25 lakh tonnes. The post-monsoon estimates for coffee production in Karnataka, Kerala, Tamil Nadu and non-traditional areas of Andhra Pradesh and Odisha stand at 2.27 lakh tonnes, 63,825 tonnes, 17,750 tonnes and 6,525 tonnes, respectively.

Adding to the problem, declining prices of Arabica have dampened the spirits of exporters. Average price of Arabica has more than halved to $1.44 per pound in the international markets.

Marvin Rodrigues, ex- chairman of Karnataka Planters' Association, said, "This year, the prices of Arabica are not good and ruling at half of the peak levels seen in early 2012. This may have an impact on exports this year."

Analysts say that Arabica prices slipped largely because of a bumper crop in Brazil and the consequential glut.