Exports of coffee have decreased by 10% – But Instant coffee exports has increased by 15%
To date, from the first week of January to the second week of June 2023, coffee exports from India (including re-exports) are about 0.4 Million Tonnes. The total value of exports is 1.12 Billion USD. Coffee shipments are down marginally at 0.19 Million Tonnes over the same period last year which comes to approximately 10%. Green bean shipments are less by 13% at 88.67K tonnes over the same period last year at 0.102 Million Tonnes. The instant coffee shipments including the re-exports are higher by 15%. This year instant coffee exports figured at 64k tonnes while in the same period last year, it was 55k tonnes.
The value of exports has increased due to higher price
There is a decrement in the number of coffee exports, but in value terms, the exports for the period are up marginally at 583 Million USD. It was 561 Million USD in the same period last year. The value of exports has increased on account of higher prices. The per-unit value of the shipments this year is 2955 USD per tonne while it was 2566 USD per tonne in the previous year.
Lower demand for coffee from largest buyers – Germany
Germany is the second largest buyer of Indian coffee. One of the reasons for less demand is the recession-hit in Germany. With Germany slipping into recession recently, Indian exporters are witnessing changing demand. “With the slackness in demand, we expect overall volumes to be less than last year. We see a dip in volumes of at least 10 percent minimum,” said Ramesh Rajah, President of the Coffee Exporters Association.
Prices of raw coffee have increased
The domestic prices of raw coffee have risen by as high as 40% over the past six months for the Robusta Cherry variety, the widely produced bean in the country.
“Germany is an important market for Arabicas. Buyers across Europe are asking for less Arabica and more Robusta, which is a matter of concern. Definitely, we are seeing some slackening in the market.” – said Rajah.
“The only coffee off-take we are seeing is Robusta Cherry, for which there are more inquiries, while the demand for other varieties is muted,” he said.