India’s Coffee Exports Surge 20% in April-May On Strong European Demand

Illustration showing India's export links with the European Union. Map not to scale. Image designed by The Kodagu Express team.

Bengaluru: India’s coffee exports recorded a robust rise during the first two months of the 2026-27 fiscal year, driven by strong demand from major European markets and favourable global market conditions.

According to data released by the Coffee Board, coffee shipments during April and May touched 92,903 tonnes, marking a 36% increase compared to 67,910 tonnes exported during the corresponding period last year.

In value terms, exports rose by 20% to $503.77 million from $418 million in the same period of the previous fiscal. Measured in Indian currency, export earnings climbed by 33% to ₹4,752 crore, compared with ₹3,567.85 crore a year earlier.

Despite the sharp increase in export volumes, average realisation per tonne witnessed a marginal decline. Exporters earned about ₹5.16 lakh per tonne during April-May, down 1.7% from ₹5.25 lakh per tonne recorded during the same period last year. The decline comes amid fluctuations in international coffee prices.

India, which ranks as the world’s seventh-largest coffee producer and fifth-largest exporter, shipped 4.05 lakh tonnes of coffee worth more than $2.12 billion during 2025-26. Export earnings for the year exceeded ₹18,809 crore, with average realisation standing at around ₹4.64 lakh per tonne.

Industry representatives attributed the strong export performance to improved competitiveness of Indian coffee in the global market. Praveen Kolimarla of Agrani Coffee and Commodities said exports have performed significantly better this year, particularly in robusta and instant coffee segments, according to Businessline report.

He noted that during much of last year, Indian coffee faced stiff competition as buyers preferred supplies from countries such as Uganda, Brazil and Vietnam due to pricing advantages. However, rising prices across producing nations have narrowed the gap, while the depreciation of the rupee has further supported Indian exporters.

Kolimarla, however, cautioned that export momentum could ease in the coming months as fresh supplies from Brazil begin reaching global markets.

Meanwhile, the United States Department of Agriculture’s office in Mumbai has projected a 3% increase in India’s coffee exports during the 2026-27 marketing year beginning in October. Exports are expected to reach 6.22 million bags of 60 kg each, equivalent to around 3.73 lakh tonnes, aided by larger exportable surpluses and sustained demand for soluble coffee.

The USDA said export growth is being supported by firm demand in key markets, supply limitations in major coffee-producing countries and growing preference for premium coffee varieties. A weaker rupee is also expected to enhance India’s competitiveness in overseas markets.

Italy continues to be the largest destination for Indian coffee exports, followed by Germany, Russia, Belgium and the United Arab Emirates. Indian coffee is currently exported to more than 125 countries worldwide.

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