Global Coffee Market Brings Gains for Indian Exporters

Indian coffee exports are thriving this year as global prices continue to rise. Brazil and Vietnam, two of the largest coffee producers, faced weather-related disruptions that reduced supply. This gave Indian exporters an opening to fill the gap. Arabica parchment, which sold for $168 per 50-kg bag at the start of the year, is now trading between $261 and $272. This price increase has brought strong demand for Indian coffee in international markets.

Unpredictable Weather Challenges Farmers

Farmers in Karnataka and Kerala, India’s largest coffee-growing regions, are dealing with tough conditions. After a dry season, heavy rains arrived, creating problems for coffee crops. Earlier production estimates of 0.363 million tonnes for the 2024-25 season are now likely to be revised downward. Many growers are working hard to protect their harvests despite these challenges.

Exports Set to Hit Record Levels

Even with domestic struggles, India’s coffee exports are expected to reach 400,000 tonnes, a new high. Early orders from European buyers, worried about possible new regulations, boosted export volumes. According to Ramesh Rajah, President of the Coffee Exporters Association, “The demand for Indian coffee remains strong, and this year’s performance reflects that.”

Farmers Feel the Weight of Rising Costs

Although global prices have climbed, Indian coffee farmers are still facing financial pressure. Costs for fertilizers, fuel, and labor have risen significantly, leaving smaller margins for growers. “We follow sustainable practices, but international buyers rarely pay extra for that effort,” says Ajoy Thipaiah of UPASI. Many farmers are finding it difficult to make ends meet despite the high prices abroad.

A Shift Towards Premium Coffee at Home

In India, coffee consumption is changing. Younger customers are showing more interest in premium blends and café culture, driving demand for high-quality coffee. Producers are noticing this trend and are adapting to meet expectations for better flavors and sustainable options. “Sustainability is no longer just a buzzword—it’s becoming a demand,” says Praveen Jaipuria, CEO of CCL Products (India) Ltd.

Conclusion: Challenges for Farmers

The Indian coffee farmers are dealing with weather challenges and rising costs, but strong export demand and domestic interest in premium coffee offer hope. With better marketing strategies and a focus on quality, Indian coffee has the potential to grow its presence both locally and globally.





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