Rising Prices and Limited Availability
Despite soaring global Robusta coffee prices, Indian growers’ reluctance to release their produce intensifies the availability crisis. Prices for the dominant Robusta Cherry variety have markedly risen compared to the previous week. Mirroring robust market trends and highlighting the tightening grip of the supply-demand trends.
Exporters Under Pressure
Exporters are grappling with the strain of meeting their commitments due to limited coffee availability. The President of the Coffee Exporters Association notes that the scarcity is placing immense pressure on exporters. This is leading to a rapid thinning of order bookings and driving buyers to explore alternative origins.
India’s coffee exports for the fiscal year ending March 2024 soared to a record value exceeding $1.26 billion, fueled by the escalating prices of Robusta coffee. According to sources, this highlights export demand driven by short covering in robustas and tight availability. Therefore, planters opt to sell in parts based on prevailing prices.
Global Market Trends and Projections
Indian coffee prices mirror the strong uptrend in global Robusta prices, attributed to supply disruptions from leading producer Vietnam and concerns over potential droughts impacting Vietnam’s coffee prospects. A source from Agrani Coffee and Commodities highlights the robust fundamentals of the Robusta market, citing growers’ reluctance to release their produce as a key factor driving the shortage.
For the 2023-24 crop year, the Coffee Board’s post-blossom estimates anticipate a crop size of 0.374 million tonnes, surpassing the previous year’s final estimates of 0.352 million tonnes. These projections provide insights into the production patterns, indicating potential challenges and opportunities for stakeholders in the coffee industry.
With the rising prices and limited availability of Robusta coffee, Indian growers are withholding their produce, intensifying the supply crisis. Exporters face mounting pressure to fulfill commitments due to constrained coffee availability, leading to dwindling order bookings and buyer diversification. Record-breaking coffee exports exceeding $1.26 billion in value for the fiscal year ending March 2024 highlight export demand driven by escalating Robusta prices and tight availability. Global market trends reflect supply disruptions from Vietnam and concerns over potential droughts, influencing Indian coffee prices.
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