India Coffee Report: Weather Hurts Production as Robusta Demand Soars

India Coffee Report: Weather Hurts Production as Robusta Demand Soars

India, known for its rich coffee culture, is facing challenges in coffee production due to adverse weather conditions. The USDA Foreign Agriculture Service has reported that the combined production of robusta and arabica in India is expected to remain steady at around 6 million 60-kilo bags for the 2024/25 market year. This is despite what would have been an “up year” in the biennial crop cycle, as a prolonged dry period has impacted the harvest.

Robusta coffee, in particular, is in high demand globally, with prices reaching a 45-year high. However, heavy rains followed by warmer weather and a dry period in key growing regions of India have affected both arabica and robusta production. This has led to a decrease in yields per hectare, with arabica expected to decrease by 3% and robusta by 2%.

Despite the challenges, the demand for Indian coffee remains strong, especially for robusta. Domestic demand is expected to increase due to the popularity of instant/soluble coffee, further reducing the country’s robusta stocks. However, international buyers are hesitant to place larger orders due to the current high prices in the global market.

The Coffee Board of India has reported a significant increase in prices for arabica and robusta since the beginning of the market year. This surge in prices is driven by global supply issues and the high demand for Indian coffee.

Overall, while India faces challenges in coffee production due to weather-related issues, the demand for its coffee remains strong both domestically and internationally. The country’s coffee industry continues to navigate through these challenges to meet the needs of coffee lovers around the world.