India’s coffee exports in the first half of the fiscal year registered a 55 per cent growth in value at $929.95 million compared with $601.58 million a year ago on higher global prices. In volume terms, exports were up 15 per cent at over 2.20 lakh tonnes from s 1.91 lakh tonnes a year ago.
In rupee terms, coffee exports were up 57 per cent at ₹7,771.88 crore from ₹4,956 crore a year ago, as per the Coffee Board’s latest data.
Exporters said the surge in purchases by importers ahead of the compliance deadline for the proposed European Union Deforestation Regulations (EUDR) coupled with the prevailing high global prices contributed to the growth in exports. Europe is the largest destination for Indian coffee exports with top buyers being countries such as Italy and Germany among others.
The EUDR is aimed at minimising the importation of products linked to deforestation and requires strict due diligence and traceability measures for commodities such as coffee and cocoa among others. The EUDR norms requires businesses in Europe to comply with its requirements by December 30 this year.
More enquiries
With the latest reports of the EU going ahead with the implementation of EUDR norms, Indian exporters are receiving more enquiries. “The buyers in Europe want to get it as much as possible before December 20 so that they have some coffee as a cushion. Front loading as expected took place resulting in higher shipments in recent months,” Ramesh Rajah, President, Coffee Exporters Association.
The normal transit time for Europe is around 45 days with delays around it could stretch upto 60 days, Rajah said. “Buyers have pushed back the deadline by a month and still buying for October shipments. Last month, we saw good demand for September and now extended to October shipments,” Rajah said.
“There is an increase in enquiries ahead of the EUDR implementation” said M P Devaiah, Business Head – Coffee, Allana Group.
Not much left
Rajah said while there is an increase in enquiry, most of the coffee in the country has already been sold. “There’s not much coffee left. It’s difficult for exporters to find coffee in the December quarter. The working stocks which used to be around 15,000-20,000 tonnes would have reduced to around 10,000 tonnes this year. Everybody is waiting for the new crop. We expect shipments during November-December to be dull, while there will be an increased demand in January-March” Rajah said.
For the coffee year ended September 30, 2024, India’s exports stood at over 4.12 lakh tonnes, up 10 per cent from 3.76 lakh tonnes the previous year. In value terms, exports during 2023-24 coffee were $1.582 billion, up from previous year’s $1.12 billion.