Indian coffee exports surpass $1 billion for the first time

India achieves a significant milestone. The country's coffee exports hit a new record high, exceeding 1 billion dollars for the first time.

Coffee exports reached 1,146.9 million dollars between April and November 2024, up 29 per cent from the previous year.

This is according to the centre for monitoring Indian economy (CMIE).

The sudden spike in exports' value is due to the surge in robusta coffee prices.

The need to stock up in anticipation of the new deforestation law imposed by the European Union also led to the export surge.

This regulation will increase the cost of coffee and other agricultural exports to the EU.

India's coffee exports increased over 12 per cent to 1.28 billion dollars for the full year in 2023–24.

In 2022–23, the country's coffee exports were valued at 1.14 billion dollars.

‘Robusta coffee prices surge’
The surge in exports is driven by higher demand for robusta coffee in global markets.

Among the most important destinations for Indian coffee exports are turkey, the United Arab Emirates, Italy, and Russia.

India eyes to fill the gap amidst global production challenges, with the cost of arabica surging to the highest level since 1977.

The primary driver is Brazil’s record-breaking drought, which has significantly impacted its coffee crop — the world's largest.

Vietnam, the leading producer of the cheaper robusta bean, also faced weather-related challenges.

A lack of rainfall during the growing season cut output by nearly half in some regions.

Beyond weather conditions, geopolitical and logistical challenges add pressure to coffee prices.

Disruptions to shipping in the red sea and potential US Tariffs have complicated the global coffee supply chain.(WIONews)