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Informist, Monday, May 5, 2025

 

NEW DELHI – The US Department of Agriculture's Foreign Agricultural Service has forecast India's coffee production in 2025-26 (Oct-Sep) at 6.1 million bags (1 bag = 60 kilogram), down 1.6% on year from 6.2 million bags last year amid a decline in yields. "A dry spell during January and February, followed by strong winds and excessive pre-monsoon rains in March and May, is expected to negatively impact yields," it said. 

 

India's Arabica production is estimated at 1.4 million bags and Robusta at 4.7 million bags. Robusta accounts for over 70% of India's coffee crop and is commonly used in commercial blends and instant coffee, the USDA's Foreign Agricultural Service said in a report. 

 

Domestic coffee consumption is expected to rise to nearly 1.4 million bags due to strong demand for soluble coffee. This rise in domestic consumption will help offset a decline in exports, which are projected to fall to nearly 6 million bags due to a lower exportable surplus, the report said. Last year, coffee exports were 6.2 million bags.  

 

Trade sources indicate that European buyers are slowing purchases due to record-high prices, the report said. Italy remains the major buyer for Indian coffee, followed by Germany, the United Arab Emirates, and Russia. The total coffee supply in India is pegged at 7.7 million bags, down from 7.9 million bags last year. 

 

"Farmgate prices of both Arabica and Robusta have risen by 64% and 24% since October, driven higher by global supply pressures, tight stocks, and lower projected output due to inclement weather," the report said. 

Coffee imports in 2025-26 are estimated at 1.3 million bags, down from 1.4 million bags. Importers are expected to limit imports due to record-high global bean prices, further exacerbated by the depreciation of the Indian rupee over the past year, the report said. Soluble coffee exporters import green beans for processing, value addition, and re-export.  End

 

Reported by Afra Abubacker

Edited by Subhojit Sarkar

 

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