Renowned for its diverse tea culture, India is increasingly making a robust mark on the global coffee market. In a spirited twist, the nation ranked as the world’s eighth-largest coffee producer, anticipates a significant surge of 10 percent in coffee exports for 2024. However, as the aroma of success wafts through the industry, unseasonal rains in crucial producing regions pose challenges for the coffee growers.
A Caffeinated Perspective on Exports
The President of the Coffee Exporters Association of India brews an optimistic forecast, attributing the anticipated growth to heightened demand, particularly for India’s robusta beans: soaring global prices and a reduction in production by the leading coffee producer, Vietnam fuels the surge. India exports a substantial three-fourths of its coffee production, with Italy, Germany, and Belgium being the primary destinations.
The Price Perk and Predictions
With a robusta cherry price touching $300 per tonne in London futures and a Bengaluru-based dealer forecasting a rise in exports to 2,98,000 tonnes in 2024, India’s coffee industry is on an upward caffeine high. Global buyers, especially in Europe, are enticed by the quality of Indian coffee and its competitive prices, positioning India as a robust contender in the international coffee market.
However, coffee growers in Karnataka and Kerala are under a cloud of concern amidst the caffeinated cheer. Unseasonal rains, disrupting the harvesting and drying processes, threaten the crop yield. The country’s largest coffee-producing region, the Kodagu district, faces a double blow with adverse weather impacting the current crop and potential repercussions for next year.
A Double Shot of Challenges – Rain and Worker Shortage
The untimely rains risk the bursting and falling of Arabica pods and may cause flowering issues in the robusta variety, affecting next year’s harvest. The shortage of workers further compounds the challenges coffee producers face in ensuring a smooth harvesting process. Kodagu, Chikkagaluru, Hassan, and Wayanad districts are witnessing the maximum impact of these unseasonal rains.
While India’s coffee exports brace for a promising surge in 2024, the industry faces the challenges posed by unanticipated weather conditions. The robust aroma of Indian coffee continues to captivate global markets, albeit under the shadow of weather-induced uncertainties. As coffee growers weather the storm, the industry remains resilient, brewing opportunities and challenges in a rich blend of prospects.