Global Demand Pushes Indian Coffee Exports Up by 15%

Indian coffee producers are enjoying a strong boost as exports increase by 15% globally. Earnings from these exports have also surged by an impressive 57%. Thanks to rising global prices. According to data from the Coffee Board, India’s coffee export volumes grew from 0.191 million tonnes last year to over 0.220 million tonnes this year. In monetary terms, exports jumped from USD 601.58 million last year to a significant USD 929.95 million this year.

Europe Leads as Top Buyer

Europe continues to be the biggest market for Indian coffee, with Italy and Germany leading the charge. Exporters are feeling the positive impact of these strong European purchases, as importers scramble to stock up before the upcoming EU deforestation regulation deadline. Many buyers have fast-tracked their orders, extending shipment deadlines into October to ensure they meet this requirement, with transit times now stretching up to 60 days.

Strong Demand But Supply is The Issue

Despite the high demand, coffee exporters are facing supply issues. Ramesh Raja, president of the Coffee Exporters Association, mentioned that most of the coffee stock in the country has already been sold. What’s left is a smaller stock, estimated at around 10,000 tonnes, compared to the usual 15,000-20,000 tonnes. With limited supply, exporters are finding it hard to meet the current demand.

Earnings Hit New Highs, but What's Next?

For the coffee year ending September 30, 2024, Indian coffee exports reached 0.412 million tonnes, marking a 10% increase from last year’s 0.376 million tonnes. In value terms, exports hit USD 1.582 billion, compared to USD 1.12 billion last year. However, exporters expect shipments to slow down in November and December before picking up again early next year as new crops become available.

Conclusion: A Bright Future but Limited Supplies for Now

Indian coffee exporters are seeing strong demand and record earnings, but supply issues may limit further growth until the next harvest. For now, holding off on big export plans until new crops arrive could be the most prudent strategy.





Click here to reach our trading platfrom CMBroker