Coffee exporters are on tenterhooks over tensions between Russia and Ukraine. Russia is the fourth-largest buyer of Indian coffee, and the largest buyer of Indian soluble or instant coffees, accounting for about 15 per cent of the exports. Ukraine, too, ranks among the top 15 buyers.
“There’s hesitation as far as order booking is concerned from both buyers and sellers. The situation is being keenly watched as nobody knows what’s going to happen. It is more of a wait-for-the-time-being attitude adopted by the concerned exporters,” said Ramesh Rajah, President, Coffee Exporters’ Association.
No shipments
According to Coffee Board data, Russia imported around 16,510 tonnes of Indian coffee, accounting for a little over 5 per cent of the total shipments in 2020. Of this, the instant coffee shipments stood at 14,009 tonnes. Similarly, Ukraine imported around 6,214 tonnes, of which instant coffee was 3,705 tonnes.
On the impact on exports, Rajah said, “We have not heard of any shipments taking place.” He added it was not clear whether the shipments were impacted due to the container shortage or the political instability in the region.
Keeping a close watch
Sources said the emerging geopolitical developments pose a concern to the Indian exporters. “We have to observe the developments over the next few days,” an industry source said.
India exports about two-thirds of the coffee it produces. Instant coffee makers import cheaper robusta beans from countries such as Vietnam to re-export them as soluble coffee. In 2021, India’s coffee exports stood at 3.96 lakh tonnes compared to 3.05 lakh tonnes the previous year. Of this, instant coffee shipments were estimated at 1.22 lakh tonnes against 98,975 lakh tonnes in the previous year.
As per provisional figures of the Coffee Board, in the current calendar year, coffee shipments were higher at 60,365 tonnes as of February 22, against 43,323 tonnes in the year-ago period. Instant coffee shipments were 17,672 tonnes compared with 16,170 tonnes.