INDIA – India’s coffee exports witnessed a surge in the first quarter of 2024, recording a 13.35 percent increase to 125,631 tonnes compared to the same period last year, fuelled primarily by robust demand for Robusta coffee.
Official data released indicates that the country exported 110,830 tonnes of coffee during the corresponding period in 2023.
As Asia’s third-largest producer and exporter of coffee, India cultivates both Arabica and Robusta varieties. While Arabica is known for its sweeter and smoother taste, Robusta tends to be more bitter and harsher on the palate due to its higher caffeine content.
The Coffee Board of India’s latest data reveals a notable surge in the export of Robusta coffee beans, rising by 18 percent to 69,637 tonnes in the first quarter of 2024 compared to 59,050 tonnes in the same period last year.
Indian robusta cherry is currently fetching a premium of nearly US$300 a tonne over London futures, underscoring the strong global demand for this variety.
However, the shipment of arabica coffee beans witnessed a decline, dropping to 13,419 tonnes from 15,468 tonnes in the said period, reflecting shifting market preferences.
Additionally, the export of instant coffee increased to 16,218 tonnes during January-March of this year from 15,238 tonnes in the year-ago period.
Re-exports of coffee have also recorded a notable rise, reaching 26,239 tonnes from 20,952 tonnes in the same period.
The total coffee export revenues surged to Rs 3,644 crore during January-March of 2024, up from Rs 2,604.44 crore achieved in the previous year, with a unit value realization of Rs 290,057 per tonne.
Italy, Russia, the UAE, Germany, and Turkey emerge as the major destinations for Indian coffee exports, with the country exporting three-quarters of its production mainly to Italy, Germany, and Belgium.
The Coffee Board of India projects the country to produce 374,200 tonnes of coffee for the 2023-24 marketing year, surpassing the actual output of 352,000 tonnes in the previous year.
Despite Indian coffee typically commanding a premium over the global benchmark due to its superior quality, this year, premiums have surged even higher than normal due to a production shortfall, indicating strong demand and market dynamics.
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