India’s exports of coffee reached a new high of $1.126 billion for the fiscal year that ends in March 2023 due to a rise in worldwide prices. The exports exceeded the Commerce Ministry’s fixed target of $1.088 billion, up by approximately a tenth in dollar value terms from the previous year’s $1.027 billion. In fact, coffee exports reached over $1 billion for the second year in a row in 2022–2023. Compared to the previous year, when exports were 7655.50 crores, they have increased by about 18% to 9033.38 crores.
Despite a 3.6% volume reduction from 4.13 lakh tonnes the year before to 3.98 lakh tonnes, according to data from the Coffee Board of India, exports have increased. Coffee Board CEO and Secretary KG Jagadeesha stated that “the increase in exports is attributed to greater realizations.” At 2.26 lakh per tonne in 2022–2023 compared to 1.84 lacks per tonne the year before, the per unit realized for Indian coffees increased by 22%.
According to Jagadeesha, the composite index price for the International Coffee Organisation last year was extremely high compared to the previous ten years. Indian coffees fall into the category of “other milds,” which has seen an increase in the ICO indicator price from about 185 U.S. cents per pound to 226 U.S. cents per pound this year.
“Our rise in value terms is significantly more rapid than in quantity. We are falling short in terms of quantity. We may surpass the billion-dollar threshold once more if prices stay the same in 2023–24, according to Jagadeesha. While India may not have any issues exporting value-added instant coffees, the transportation of green coffee is entirely dependent on environmental conditions like the weather. We’ll have a good crop and good exports if the weather is nice, he continued.