20000104

Indonesia Coffee-Supply tight, eyes on new harvest

JAKARTA: Tight supply was expected to push up prices on Indonesia's coffee market, which was surprisingly quiet for the start of the new year, traders said on Monday.

"It's very, very quiet. There are no traders in Palembang and Bandar Lampung and beans are difficult to find. It seems we have to wait for the next harvest in March to replenish our stocks," said one trader in Jakarta.

Many traders had expected the market to be active ahead of the Eid-ul-Fitr festival in January because farmers usually release their beans ahead of the Muslim celebration. Eid-ul-Fitr marks the end of the Ramazan fasting month.

"The market should have been busy if farmers still have stocks to sell. But it doesn't happen," said the Jakarta-based trader.

Traders said grade four robusta beans were quoted at 8,000 rupiah/kg against 7,000 rupiah/kg in December.

The Indonesian Coffee Association said the country's coffee production was expected to rise to 500,000 tonnes in the 1999/2000 coffee year (Oct-Sept) from about 450,000 tonnes in 1998/99.-Reuters