India's coffee exports reached a new high in value terms for the financial year ending March 2024, driven by robust global prices, particularly for Robusta coffee. Despite a slight decline in export volumes, the financial year marked the third consecutive year of record-setting performance in the coffee export sector. The total value of coffee shipments increased by 12.5 percent to $1.26 billion from the previous fiscal year, with shipments totaling 3.88 lakh tonnes, a marginal decrease from the previous year's 3.98 lakh tonnes.
The surge in global Robusta prices, attributed to supply constraints in major producing countries like Vietnam and Brazil, benefitted Indian coffee exporters, with Robusta being the predominant variety produced in India. This supply crunch led to a significant increase in per unit realization for Indian exporters, reaching approximately ₹2.7 lakh per tonne in the 2023-24 financial year. The Indian coffee sector, particularly through instant coffee exports, capitalized on the high market prices and supply disruptions in other major coffee-producing nations.
Domestically, robusta coffee prices have surpassed those of arabica, reflecting the global market trends. Robusta parchment prices in India have been higher than arabica, with notable premiums over London terminal prices. Key export destinations for Indian coffee include Italy, Germany, Russia, and the UAE. Looking ahead, the Coffee Board's post-blossom estimates project an increase in coffee production for the 2023-24 crop year, indicating a positive outlook for India's coffee sector amidst favorable global market conditions.