January 29, 2025
India's coffee exports are projected to decline by more than 10% in 2025 due to reduced production and lower carry-forward stocks from the previous season, even as coffee prices reach record highs. Industry officials indicate that this downturn in supply could further strain global coffee availability, already affected by lower output from Brazil.
As the world's seventh-largest coffee producer, India primarily grows robusta beans, used in instant coffee, along with the more expensive arabica variety. The decline in Indian exports may contribute to tightening global supplies, further bolstering benchmark futures, which recently hit a record high.
"Although prices are higher, the smaller crop will result in lower export volumes," said Chengappa Pradhan, a researcher at Volcafe, the coffee trading arm of ED&F Man. He estimates that exports in 2025 could drop by more than 10% from the previous year's record 295,402 metric tons.
Several factors have impacted India's coffee production. Higher summer temperatures and water shortages affected the conversion of coffee flowers into cherries, while subsequent heavy rains caused fruit to drop prematurely. "This year, harvesting was delayed due to rains. Early trends suggest lower yields," said Marvin Rodrigues, a coffee grower.
In the 2023/24 marketing year, which ended in September 2024, India harvested 374,200 tons of coffee, comprising 261,200 tons of robusta and 113,000 tons of arabica, according to estimates from the state-run Coffee Board. However, the final production figures for the current season have yet to be confirmed. "We are receiving reports of lower yields. Our estimate will be finalized after conducting a detailed survey," an official from the Coffee Board stated.
Depleted inventories also contribute to the expected decline in exports. Strong demand in 2024, driven in part by the European Union Deforestation Regulation (EUDR), led to higher Indian coffee exports, reducing stock levels to a negligible amount. "Lower carry-forward stocks will reduce the available surplus for exports," said Ramesh Rajah, president of the Coffee Exporters' Association of India.
European countries such as Italy, Germany, and Belgium remain key buyers of Indian coffee. The initial deadline for EUDR compliance was December 2024 but has since been extended to December 2025 for large operators and traders. Many European buyers increased their purchases in anticipation of the regulation but are now slowing down acquisitions due to record-high prices.
While demand for Indian arabica has softened, Indian robusta remains in high demand, commanding a premium over London futures. "Farmers have witnessed prices rally month after month, and many are holding back their crops in anticipation of further gains," Pradhan noted. Currently, Indian robusta is being offered at a premium of $250 per ton over London futures, according to dealers.
As global coffee supply concerns persist, India's declining output and export reductions could play a significant role in shaping the market landscape for the remainder of 2025.