World starts waking up to Indian coffee, exports cross $1 billion first time

Traditionally a tea exporter, India is making significant inroads into the global coffee export market with total exports during the current financial year up to November crossing the $1-billion mark for the first time, according to data from Centre for Monitoring Indian Economy (CMIE).

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The sharp growth is partly attributed to a surge in Robusta coffee prices, which account for over 40 per cent of global production, and partly due to stocking ahead of the European Union's new deforestation regulation that could raise the cost of coffee as well as several other agricultural exports to the EU.

India’s coffee exports rose to a record high of $1,146.9 million between April and November in FY24, compared to $803.8 million during the same period last year, registering a 29 per cent rise. This figure is nearly double the exports during the same period in FY21, which stood at $460 million.Global Robusta prices have soared to multi-decade highs due to supply issues in major coffee-producing countries like Vietnam and Brazil.According to news agency Reuters, the price of Robusta beans peaked at $4,667 per metric ton on the London-based ICE Futures Europe market in June, marking a 63 per cent increase this year alone.Notably, India’s exports of tea saw little change despite expectations of gaining new markets following the economic crisis in Sri Lanka, one of the largest tea exporters in the world.A government official said that Indian coffee managed to capture the “premium segment” of the export market unlike in the case of tea.World starts waking up to Indian coffee, exports cross $1 bn first time