India’s coffee exports surpassed the Rs 10,000 crore mark in the fiscal year 2023-24, propelled by soaring global Robusta prices.
Despite a marginal decline in volumes, the surge in value underscores the robust demand for Indian coffee on the international stage.
The fiscal year 2023-24 marked the third consecutive year in which Indian coffee shipments registered a new record, with exports reaching Rs 10,491 crore, a 16 per cent increase from Rs 9,033 crore in the previous year. In dollar terms, the exports witnessed a 12.5 per cent rise, totalling USD 1.26 billion, up from USD 1.12 billion in 2022-23.
While the quantity of exports saw a marginal 2.5 per cent dip, settling at 3.88 lakh tonnes compared to 3.98 lakh tonnes in 2022-23, the surge in value can be attributed to the remarkable surge in global Robusta prices.
The global Robusta prices have skyrocketed to a three-decade high due to supply constraints in top producing countries such as Vietnam and Brazil. This development has played a pivotal role in boosting the Indian coffee sector, where Robusta is the most widely cultivated variety.
Consequently, the per-unit realisation for Indian exporters increased by approximately 20 per cent, reaching Rs 2.7 lakh per tonne during 2023-24, up from Rs 2.26 lakh in the previous financial year.
K.G. Jagadeesha, Secretary and CEO of the Coffee Board, attributed the export surge to “a combination of factors such as good market prices for Indian coffee and supply-side disruptions in Brazil and Vietnam.” He further noted that the increase in export quantity over the last three years has been driven primarily by instant coffee.
Italy, Germany, Russia, and the UAE are among the primary destinations for Indian coffees. For the 2023-24 crop year beginning in October, the Coffee Board’s post-blossom estimates project a crop size of 3.74 lakh tonnes, an increase from the previous year’s final estimate of 3.52 lakh tonnes.