India’s Coffee Shipments Surge 25% to 2.42 Lakh Tonnes Amidst Robust Demand in H1 FY27

Indian coffee exports demonstrated remarkable growth, increasing by 25% in volume during the first half of the current financial year, reaching over 2.42 lakh tonnes. The Coffee Board reported that in dollar terms, exports rose by 10% to $1.17 billion compared to $1.06 billion in the same period last year. While overall export volumes rose significantly, the value growth was tempered by volatility in global coffee prices, which led to a decline in per unit realisation from Rs 4.72 lakh per tonne to Rs 4.59 lakh per tonne.

This robust export growth signifies a positive trend for Indian farmers and the coffee sector, potentially resulting in increased income and job opportunities within farming communities. For consumers, the implications may vary as global price fluctuations could eventually affect retail coffee prices in India. From a market perspective, the rise in export value, despite the slower growth rate, indicates a strong global demand for Indian coffee, which can bolster investor confidence in the agricultural sector.

Looking ahead, the government’s and RBI’s focus will likely shift toward enhancing support for coffee growers and improving price stability through better market mechanisms. This could include financial assistance mechanisms or investments in quality enhancement to meet international demand more effectively. As the Coffee Board projects the coffee crop for the upcoming year will stand at 4.04 lakh tonnes, the outlook hinges on effective policy measures to ensure sustainable growth in the sector amidst global price volatility.

Source: The Hindu

(Expert Note: This report was independently prepared by the Wealthova Economy team.)