Why West Asia Tensions May Impact Indian Coffee Exports
- Saritha Devaiah Ballachanda
- Mar 5
- 4 min read
Even as India’s coffee harvest season concludes and exports gather momentum, rising tensions in West Asia have triggered concern among exporters who fear disruptions to shipments and trade routes. The Kodagu Express explains how the geopolitical situation could affect one of India’s key agricultural exports and the global markets that depend on it.
Why are exporters worried?
Exporters say uncertainty surrounding the conflict in West Asia has already begun affecting logistics. Some international shipping lines have reportedly paused cargo bookings to destinations in the region, while others remain unclear about whether shipments will continue as usual.
For exporters, this is a major concern because West Asia is one of the largest markets for Indian coffee. Nearly one-fifth of India’s coffee exports are shipped to countries across West Asia and North Africa.
Industry representatives say that if shipping restrictions continue, exporters could face delays, higher costs, and uncertainty in fulfilling contracts.
As quoted in the Businessline report, Ramesh Rajah, President of the Coffee Exporters Association, said exporters are closely monitoring developments. According to him, some shipping companies have already indicated they will not accept cargo bound for the region, while others have yet to clarify their position. Given the importance of the market, the situation is causing anxiety across the industry.
Which countries import Indian coffee?
Several West Asian and North African nations are significant buyers of Indian coffee. During the calendar year 2025, the United Arab Emirates emerged as the fourth-largest importer of Indian coffee, following Italy, the Russian Federation, and Germany.
Other key buyers in the region include Turkey, Jordan, Kuwait, Egypt, and Libya.
Coffee Board data shows that these countries collectively purchased about 20 per cent of India’s coffee exports in 2025, when the country exported around 3.84 lakh tonnes.
Among them, the UAE imported about 21,172 tonnes. Turkey followed with 17,073 tonnes, while Libya purchased 14,133 tonnes. Jordan imported 11,178 tonnes, Egypt bought 7,650 tonnes, and Kuwait accounted for 5,957 tonnes.
Why does the region matter to exporters?
For Indian exporters, Europe remains the biggest destination for coffee shipments. However, West Asia is widely considered the second most important market.
Industry leaders note that while tariff changes in the United States have limited impact because Europe dominates Indian coffee trade, any disruption in West Asia could have significant consequences due to the region’s large and growing demand.
Shipping disruptions and rising freight costs
Another major concern is the possible disruption of shipping routes and the rising cost of transportation.
Some exporters say that the global shipping company MSC Mediterranean Shipping Company has suspended bookings for cargo destined for West Asia as a precautionary step amid the evolving geopolitical situation.
In addition to logistical challenges, rising crude oil prices could push freight costs higher. Oil prices have already risen by about 10 per cent, which exporters say will likely increase shipping rates.
This could add to the financial burden on exporters, especially since many Indian coffee shipments already travel long routes, often around Africa, to reach markets in Europe.
Exports currently on the rise
Despite these concerns, India’s coffee exports have shown strong growth in the early months of 2026.
Shipments during January and February reached 80,931 tonnes, marking an increase of around 40 per cent compared with 57,966 tonnes exported during the same period last year.
In terms of value, exports rose 38 per cent to reach about $405 million.
The surge in exports has been driven largely by strong demand from European and West Asian markets.
Which varieties are in demand?
Data indicates that coffee grown in India recorded a 46 per cent increase in exports during the first two months of the year, reaching 62,923 tonnes compared with 42,989 tonnes in the same period last year.
Among the varieties, Robusta Cherry and Arabica parchment have witnessed particularly strong demand, while Arabica cherry and Robusta parchment have seen comparatively lower demand.
Meanwhile, re-exports — where India imports coffee to process into value-added products such as instant coffee before exporting — rose by about 20 per cent to 18,007 tonnes.
A record year for Indian coffee
The year 2025 was a landmark year for the Indian coffee industry. Exports crossed the $2 billion mark for the first time, registering a growth of around 22 per cent compared with the previous year.
Higher global coffee prices and strong demand from countries such as Russia contributed to the record performance.
However, exporters warn that continued instability in West Asia could complicate logistics and trade flows just as shipments from the new harvest season are accelerating.
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