Coffee output declines, clouds export outlook

India's coffee exports are expected to decline more than 10% in 2025 due to lower production and reduced carry-forward stocks from last season's crop, even as beans fetch record high prices, industry officials told Reuters on Wednesday.

- Reuters

MUMBAI:

The South Asian country, a major tea producer, is also the world's seventh-largest coffee grower. The country mainly produces robusta beans used to make instant coffee, but also grows the more expensive arabica variety.

Lower exports from India could further tighten global supplies, already squeezed by weaker output from top producer Brazil, which would support benchmark futures that hit a record high this week.

"Although prices are higher, the smaller crop will result in lower export volumes," Chengappa Pradhan, researcher at Volcafe, the coffee trading arm of ED&F Man, told Reuters.

Exports in 2025 could fall by more than 10% from the prior year's record 295,402 metric tonnes, he said.