India’s coffee exports have crossed $1 billion for the first time, reaching a new record high.
Between April and November 2024, coffee exports reached $1,146.9 million, up 29 percent from the previous year.
This is according to the Centre for Monitoring Indian Economy (CMIE).
The value of exports has suddenly increased due to the rise in the price of Robusta coffee.
The need to stockpile in anticipation of new deforestation rules imposed by the European Union also led to the increase in exports.
The regulation will increase the cost of coffee and other agricultural exports to the EU.
India’s coffee exports rose 12 percent to $1.28 billion for the full year 2023-24.
The country’s coffee exports in 2022-23 were $1.14 billion.
Robusta coffee prices rise
High demand for robusta coffee in global markets is boosting exports.
Turkey, the UAE, Italy and Russia are among the most important destinations for Indian coffee exports.
India is looking to fill the gap amid global production challenges as Arabica prices rise to their highest levels since 1977.
The primary driver is Brazil’s record drought, which has significantly affected its coffee crop – the world’s largest.
Vietnam, a leading producer of inexpensive robusta beans, also faced weather-related challenges.
Lack of rainfall during the growing season cut production by almost half in some regions.
Beyond weather conditions, geopolitical and logistical challenges are adding pressure to coffee prices.
Disruptions to shipping in the Red Sea and US tariffs have complicated the global coffee supply chain.
