Exports from India increase as coffee prices rise in the world market: Production will increase

Bhoo Bazar - Dilip Shah

Instant Coffee Exports Boost: Global Coffee Prices Point to Higher Amid Production Recession in Brazil

In the coffee market and industry in the country, trends have been seen to reverse rapidly recently. Although there is a special demand for tea compared to coffee in India, but now the consumption of coffee has also been seen increasing rapidly among the new generation. This year, the demand for coffee in India was mainly in various states of South India, but now in most of the states of the country, especially in the big cities, the demand for coffee among the youth is increasing from the market. While the domestic demand for coffee in India is increasing, on the other hand coffee is also being exported from India. Meanwhile, there are two main types of coffee. Among these varieties, robusta coffee and arabica coffee have recently experienced global shortages in supply. Due to this the prices have also increased. Robusta type of coffee is mainly used in the production of instant coffee. As robusta coffee is easily cultivated in plantations and requires no special care in production, the prices of robusta coffee are generally low. However, the situation has changed recently. According to the sources of the International Coffee Organization, the record of 11 to 12 years of rising prices has been broken recently. The price of instant coffee in Germany has increased by 18 to 20 percent. Prices have also risen in the US amid a shortage of Robusta. Some farmers who grow coffee have also found opportunities to turn to avocado production. Drought in Brazil has also affected coffee supply. Crops have been affected by excessive rainfall in Indonesia. Globally, robusta coffee trades have increased in the export market during the last October to March period. A growth of 4 to 5 percent has been recorded in export shipments during this period. Recently, the increase in inflation in various countries of the world has led people to switch to cheap coffee instead of consuming coffee and this has also had a positive effect on the market price of robusta coffee. Due to this, the demand and price of instant coffee has been increasing globally.

Meanwhile, coffee exports from India increased by around two percent to four lakh tonnes in the previous year of 2022. It is also maintained in the early months of 2023. Among Asian countries, India ranks third in terms of production and export of coffee. Export of instant coffee from India increased in 2022. Apart from this, the export of coffee from India has also increased in the form of value addition by importing coffee, market sources said. According to the sources of the government-owned Coffee Board, the export of coffee from India was about 3 lakh 93 thousand tons in the year 2021, it has increased to 4 lakh tons in the year 2022. In terms of the value of coffee, such export was about Rs.6984 to 6985 crores in the year 2021, it has increased to Rs.8762 to 8763 crores in the year 2022. India has seen a significant increase in coffee exports in terms of rupees as the value of coffee in the export market has increased during this period. Robusta coffee, Arabica coffee and instant coffee have been exported from India. The export of robusta coffee from India has been recorded at 220,000 to 21,000 tonnes in 2022, while the export of Arabica coffee has decreased by about 11 to 12 percent to 44,500 to 600,000 tonnes in this period. However, the export of instant coffee from India has increased significantly by 16 to 17 percent to 35,800 to 900 tons in 2022, sources of the Coffee Board said. Meanwhile, re-exports of coffee from India have increased to close to one lakh tonnes in 2022. The price of coffee export to India was Rs.2 lakh 18 thousand to 19 thousand per tonne in 2022. Which in 2021 yielded 1 lakh 77 to 78 thousand. Coffee exports from India have been mainly seen in Italy, Germany and Russia. Meanwhile, in the coffee year of 2022-23 (October 2022 to September 2023), the production of coffee is expected to increase to around 3 lakh 93 to 94 thousand tons. In the previous coffee year of 2021-22, the production of coffee in the country was about 3 lakh 42 thousand tons.