Indian coffee exports have dropped sharply in 2023, what do experts say?
India, with a rich history in the coffee industry, is the third-largest coffee producer and exporter in Asia. As of 2009, Indian coffee accounted for 4.5% of global coffee production. Exports grew significantly, accounting for 80% of India’s total coffee exports. Key export destinations include Germany, Russia, Spain, Belgium, Slovenia, the United States, the United Kingdom, Japan, Greece, the Netherlands, and France. However, according to the latest report from the market, Indian coffee exports have decreased sharply in 2023. Find out with XLIII Coffee!
Discussions as Indian coffee exports decrease by 5.4% in 2023
According to Indian magazine Business-standard, this country’s coffee exports will decrease by 5.4% in 2023. Export output will only be 377,000 tons, a decrease of 21,000 tons from 2022. According to analysis, the cause of this decline is due to a sharp decline in Robusta coffee exports. From 220,000 tons in 2022, India’s Robusta exports decreased sharply to 187,000 tons (about 15%) in just one year.
Although exports of Arabica coffee and instant coffee both increased compared to last year, the country’s total export output was still pulled down. In 2023, Arabica exports saw a 5.79% increase (from 44,302 tons to 46,869 tons), and instant coffee exports increased by 6.68% (from 133,000 tons to 142,000 tons).
Despite the volume dip, analysts maintain a positive outlook for the Indian coffee industry. In terms of value, India’s coffee exports stood at Rs 9,580.58 crore. The realized unit value is Rs 2,54,104/tonne. This is a record high in 2023. The reason the export value is high when the volume is decreasing may be because India’s main markets are in countries such as Italy, Russia, UAE, Germany, and Turkey States and world coffee prices are increasing.
Indian coffee exports decreased by 5.4% in 2023
Forecast of India's total coffee production in 2024
According to the Coffee Board of India, the country’s total production could increase to 374,200 tonnes in the 2023/24 crop year (October-September). This figure is about 6.3% higher than the previous year’s actual output of 3,52,000 tons. It is estimated that India’s coffee exports could increase by up to 10% in 2024. This growth will come from rising global prices, prompting European buyers to pay a premium to increase their purchases of Indian coffee. Additionally, demand for Indian coffee will increase as the world’s largest-producing countries are expected to produce less in 2023/24 compared to the previous season.
It is estimated that India’s coffee exports could increase by up to 10% by 2024
Farmers in Karnataka state, India have completed nearly 20% of the first harvest. Fresh harvests of Indian coffee are expected to reach international markets soon. Discover XLIII Coffee’s curated selection of premium specialty coffees to choose from and experience the coffee flavors you love!
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