India coffee exports brew strong global demand surge

Rising shipments signal strengthening global appetite, improved realisations, and expanding processing capacity across domestic industry sectors 

Commodity Desk

MUMBAI

India’s coffee exports recorded a strong start to 2026, rising 26.6% year-on-year during the January–April period, signalling improving global demand and a shifting export mix. Shipments touched 1.74 lakh tonne compared to 1.37 lakh tonne in the corresponding period last year, supported primarily by robusta and value-added segments such as instant coffee.

  The surge reflects evolving dynamics in India’s coffee trade, where robusta continues to dominate export volumes. Robusta shipments climbed 36% to 85,168 tonne, benefiting from competitive pricing and rising global consumption, particularly in blends and instant formats. 

Instant coffee exports also registered healthy growth, increasing to 20,332 tonne, while re-exports saw a notable jump, underscoring India’s role as a processing hub. In contrast, arabica exports declined sharply by 58% to 30,589 tonne, indicating supply constraints and shifting market preferences.

This divergence highlights a broader structural trend where robusta is gaining prominence amid changing consumption patterns and cost considerations in international markets.  Export earnings mirrored the volume growth, with total realisations rising to ₹936.57 crore from ₹757.07 crore a year earlier. Improved unit value realisation, which edged up to ₹4,94,766 per tonne, further supported revenue growth. 

The rise in value suggests stronger pricing power, aided by firm global coffee prices and demand resilience. According to Coffee Board of India, the sector is entering a phase of expansion, backed by favourable production prospects. Output for the 2025–26 season is projected at a record 4,03,000 tonne, driven by better yields and improved weather conditions across key producing regions such as Karnataka, Kerala, and Tamil Nadu.

Arabica production is expected to recover to around 1,18,000 tonne, while robusta output could exceed 2,84,000 tonne. This production outlook, combined with steady domestic consumption and rising imports for processing, indicates a more diversified and resilient industry structure. However, the outlook is not without risks. Weather volatility and climate-related disruptions remain key concerns that could impact yields and quality.