Strong Demand Boosts Indian Arabica Coffee Exports by 60% in Early 2025

Indian arabica coffee has seen a surge in demand from international buyers in the first two months of 2025, even as overall coffee shipments remain below last year's levels due to a global supply crunch. The Coffee Board of India reported a significant 64% increase in export permits for premium arabica parchment, with shipments reaching 9,881 tonnes compared to 6,025 tonnes in the same period last year. Arabica cherry exports also rose by 60% to 2,636 tonnes, up from 1,647 tonnes previously.

Robusta Exports Lag Behind

While arabica shipments have grown, robusta coffee exports tell a different story. During January and February, robusta shipments fell by 25%. Robusta parchment exports dropped to 2,348 tonnes from 3,114 tonnes, while robusta cherry exports decreased to 22,772 tonnes from 30,371 tonnes. However, re-exports of coffee showed a positive trend, rising 11% to 15,183 tonnes from 13,635 tonnes. Overall coffee shipments during this period were down by 10%, totaling 60,089 tonnes compared to 66,864 tonnes last year.

Global Market Dynamics Influence Demand

Ramesh Rajah, President of the Coffee Exporters Association, noted that international buyers are adopting a hand-to-mouth purchasing approach as high prices persist. He pointed out that arabica cherry exports might gain momentum due to the situation in Brazil, the world's largest arabica producer. Brazil and Vietnam, which leads in robusta production, have both faced climate-related challenges affecting their coffee output and driving up global prices.

Brazil's coffee exports hit a record high of 50.44 million bags (60 kg each) in 2024, marking a 28% increase from the previous year. This unexpected rise in shipments, despite a lower crop yield, has led many in the industry to believe Brazil is heavily drawing on its stockpiles.

Coffee Export Values Rise Sharply

In value terms, Indian coffee exports for the April-January period of the 2024-25 financial year have risen by 43%, reaching $1,362 million, up from $950 million in the same period last year. This growth is largely attributed to higher coffee prices, reflecting the broader trends in the global market.