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Indian coffee exports soared in FY24, surpassing Rs10,000 crore fueled by record-high global Robusta prices. Despite a slight dip in volume, export values surged by 16%, marking the third consecutive year of record-breaking performance.

Highlights

Record-breaking Exports: Indian coffee exports reached a milestone in FY24, surpassing Rs 10,000 crore in value, driven by soaring global Robusta prices. Despite a slight decrease in volume, the value of shipments hit a new high, marking the third consecutive year of record exports.

Financial Growth: Exports in dollar terms increased by 12.5% to $1.26 billion, and in rupee terms, they rose by 16% to Rs 10,491 crore compared to the previous fiscal year. This growth is attributed to the high prices of Robusta coffee, the most produced variety in India.

Supply and Demand Dynamics: Global Robusta prices soared to a three-decade high due to supply issues in major producing countries like Vietnam and Brazil. This benefited India, where Robusta is predominant. Consequently, the per-unit realization for Indian exporters rose by about a fifth, reaching Rs 2.7 lakh per tonne in FY24.

Export Trends: The surge in exports was primarily driven by instant coffee, with India exporting around two-thirds of its annual coffee production. The country also imports cheaper Robusta coffee for value addition and re-export.

Industry Insights: Ramesh Rajah, President of the Coffee Exporters Association, noted that the increase in export value was largely driven by Robusta coffee. Demand remained strong, especially in the last two quarters of FY24.

Market Prices: Robusta parchment prices in India surpassed Arabica prices, with robusta commanding premiums over London terminal prices. Prices for different coffee varieties ranged from Rs 8,000 to Rs 14,500 per 50 kg bag, reflecting the robust demand for Indian coffee in global markets.

Major Export Destinations: Italy, Germany, Russia, and UAE are among the significant destinations for Indian coffee exports, indicating a diverse market reach for Indian coffee products.

Future Projections: The Coffee Board projected a crop size of 3.74 lakh tonnes for the crop year 2023-24, reflecting a positive outlook for the Indian coffee industry despite global supply challenges.

Conclusion

In a remarkable feat, India's coffee export industry has capitalized on surging global Robusta prices, achieving unprecedented financial milestones in FY24. The consistent growth trajectory over the past three years, despite minor volume fluctuations, underscores the resilience and adaptability of the Indian coffee sector. With robust demand and strategic market positioning, particularly in major destinations like Italy, Germany, Russia, and UAE, Indian coffee continues to assert its prominence in the global market. The projections for the upcoming crop year signal a promising outlook, further bolstering confidence in the industry's ability to navigate challenges and sustain its upward trajectory. As India consolidates its position as a key player in the global coffee trade, the future holds tremendous potential for continued growth and innovation in the country's coffee export landscape.

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