In the fiscal year 2023-24, India’s coffee exports saw a notable increase, rising by 12.22%. The growth is primarily attributed to the heightened demand for Robusta coffee in global markets. India, known as Asia’s third-largest coffee producer and exporter, cultivates two primary varieties of coffee: Arabica and Robusta. This report talks about the factors contributing to the rise in coffee exports, the distinct characteristics of these coffee varieties, and the key export destinations.
Robusta’s Rising Popularity
The surge in coffee exports can be credited mainly to the growing global demand for Robusta coffee. Robusta coffee beans, which are more bitter and harsher in taste compared to Arabica, contain higher caffeine content. This makes them a preferred choice for strong coffee blends and instant coffee products. The increasing preference for strong coffee in various markets has strengthened the demand for Robusta, thereby boosting India’s coffee export figures.
Arabica vs. Robusta
India produces both Arabica and Robusta coffee. Arabica beans are known for their sweet and smooth flavour profile and lower caffeine content. Due to their delicate taste, they are often preferred for high-quality coffee blends. On the other hand, Robusta beans, with their higher caffeine content and more robust flavour, are favoured for instant coffee and espresso blends. The distinct characteristics of these two coffee types allow India to cater to diverse market preferences, enhancing its export potential.
Volume Growth
In addition to the increase in export value, the volume of coffee shipments from India also saw a significant rise. During the January-March period of 2023-24, coffee exports increased by 13.35% to 1,25,631 tonnes, up from 1,10,830 tonnes in the same period the previous year. This growth in volume highlights the expanding global footprint of Indian coffee.
India’s coffee exports are primarily directed towards several major international markets. Italy stands out as the top destination, followed by Russia, the UAE, Germany, and Türkiye. These countries have a strong coffee culture and a high demand for both Arabica and Robusta varieties. The strategic focus on these markets has played a crucial role in driving the growth of India’s coffee exports.
The significant rise in India’s coffee exports in 2023-24 underlines the increasing global demand for Indian coffee, particularly the Robusta variety. This growth reflects India’s ability to cater to diverse taste preferences and the expanding coffee culture worldwide. The boost in both export value and volume indicates a robust performance by Indian coffee exporters. By continuing to focus on quality and market expansion, India is well-positioned to strengthen its status as a leading coffee exporter.
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