Harvest Underway with Strong Projections

India’s coffee production for the 2024–25 crop year is expected to reach a record 380,000 tonnes, according to exporters. This includes 80,000 tonnes of arabica and 300,000 tonnes of robusta, as estimated by Ramesh Rajah, President of the Coffee Exporters Association.

The government’s provisional estimate, however, is slightly lower at 363,300 tonnes, as mentioned in a recent parliamentary update. By comparison, coffee production in 2023–24 stood at 360,500 tonnes.

Challenges Faced by Farmers

Weather conditions have posed challenges for coffee growers this year. Robustas have fared better in irrigated regions, while non-irrigated areas experienced reduced yields. Arabica production has been particularly affected by unfavorable weather.

“The robusta harvest in Karnataka has been good, although Wayanad saw some weather-related impact,” said Rajah. “Arabica yields are marginally lower due to delayed harvesting.”

Although arrivals are picking up, market activity remains subdued. Farmers are hesitant to sell, and trading volumes are light. Rajah expects sales to improve as robusta arrivals gain pace.

Prices Likely to Remain Stable

Coffee prices are not expected to see major changes in the short term. Robustas face price pressure from Vietnam’s ample supply, while arabica prices will depend on Brazil’s crop performance.

Praveen Kumar Kolimarla from Agrani Coffee and Commodities noted that coffee prices might remain volatile but with a slight upward bias until production improves in large exporting nations like Brazil and Vietnam.

Global Coffee Market Trends

Globally, coffee prices have been high over the past two years due to tight supplies. The International Coffee Organization’s Composite Indicator Price averaged 229.34 US cents per pound in 2024. While this marks a significant increase from 2023, the strong US dollar has added financial challenges for coffee-producing regions.





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