India's Coffee Exports Exceed $1 Billion Benchmark from April to November
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New Delhi, Jan 1 (NationPress) India's coffee exports have experienced significant growth from April to November in the current fiscal year, exceeding an impressive $1 billion during this 8-month timeframe, based on statistics gathered by the Centre for Monitoring Indian Economy (CMIE).
The increase in export value can be attributed to the substantial rise in prices of Robusta coffee and preparations for the European Union's new deforestation regulation, which is anticipated to elevate the costs of coffee and several other agricultural exports to the EU.
In the fiscal year 2023-24, India's coffee exports surged by 12.22 percent to reach $1.28 billion due to heightened demand for Robusta coffee in international markets, as reported by the Commerce Ministry. This marks an increase from $1.14 billion in 2022-23.
Primary markets for India's coffee exports include Italy, Russia, the UAE, Germany, and Turkey.
In the 2022-2023 period, India secured its position as the eighth-largest coffee producer globally. Renowned for its premium quality, Indian coffee commands a significant price in international markets. The country cultivates two main varieties of coffee: Arabica and Robusta.
Arabica coffee boasts a higher market value compared to Robusta, attributed to its delicate aromatic flavor. In contrast, Robusta coffee is preferred for various blends due to its robust flavor profile. Robusta constitutes the majority of coffee production, accounting for 72 percent of India's overall coffee output. India ranks as the fifth-largest global producer of Robusta coffee. The coffee sector directly employs over 2 million individuals in India. As a key export commodity, domestic consumption does not significantly sway coffee prices.
Coffee cultivation is predominantly located in India's southern states, with Karnataka being the leading producer, contributing 71 percent of total coffee output. Kerala follows as the second-largest producer, contributing approximately 20 percent, while Tamil Nadu ranks third, producing 5 percent of India's coffee. A significant portion of Tamil Nadu's coffee comes from the Nilgiri district, a noted region for Arabica cultivation. Lesser quantities are produced in Orissa and the northeastern regions.
For the 2023-24 crop year, India's combined yield of Arabica and Robusta is estimated to be around 3.74 lakh tonnes. Arabica production is slightly above 1 lakh tonnes, while Robusta production is estimated at around 2.6 lakh tonnes.
