Dubai – Qahwa World
Indian coffee exports are on track to cross the $2 billion mark by the close of 2025, driven primarily by strong global prices, even as shipment volumes decline.
According to export permit data issued by the Coffee Board of India, the total value of coffee exports reached approximately $1.968 billion by 16 December. This represents a year-on-year increase of about 21% compared with the $1.63 billion recorded during the same period in 2024. The export value is more than double what the sector generated five years ago, underscoring the impact of sustained price strength in international markets.
In contrast, export volumes moved in the opposite direction. Shipments up to mid-December totaled around 366,000 tonnes, down from 391,000 tonnes during the corresponding period last year, reflecting a decline of roughly 6%.
Industry sources cited by Indian media reports suggest that the reduction in volumes is partly linked to some European buyers opting for lower-priced coffee origins, as Indian coffee prices remained comparatively high throughout the year.
Despite this shift, Indian coffee—both Robusta and Arabica—continues to command solid premiums on global exchanges. Indian Robusta parchment AB is currently trading at an estimated premium of $1,000 to $1,100 per tonne above London LIFFE prices. Robusta cherry AB is fetching an additional $400 to $450 per tonne. Meanwhile, Arabica parchment is selling at a premium of approximately 12 to 15 US cents per pound over New York market prices.
Europe remained the largest destination for Indian coffee exports. Italy accounted for about 18% of total shipments, followed by Germany at 11% and Belgium at 7.5%. Other key markets included the Russian Federation, which absorbed roughly 5.3% of exports, and the United Arab Emirates at around 5%.
India currently ranks as the world’s seventh-largest coffee producer and the fifth-largest exporter, maintaining a strong position in the global coffee trade despite ongoing shifts in demand and pricing dynamics.
