India's coffee production is stable, but there are still quite a few crises such as weather and shipping that affect the new crop season's production and export volume.

Source:Best Coffee > News Author:qjroot Published:2024-05-10 18:23:39

Recently, the United States Department of Agriculture released its annual report on Indian coffee, which stated that India’s coffee production for the 2024/25 marketing year is estimated at around 6 million bags of 60-kilogram beans, with Arabica estimated at 1.4 million bags of 69-kilogram beans and Robusta estimated at 4.6 million bags of 60-kilogram beans.

Rainfall statistics for coffee-growing regions in Karnataka and Kerala, India

This has led to a 13% increase in Arabica coffee prices and a 15% increase in Robusta coffee prices in India in April. Given the current strong global demand for coffee, India’s export volume is expected to remain around 6.3 million bags. However, due to the strong domestic demand for instant coffee, India’s coffee consumption is also projected to grow by 2%, reaching 1.3 million bags.

Statistics on Robusta coffee planting area and production in India

Regarding the Red Sea, it has been reported that a spokesperson for the Houthi armed forces in Yemen recently stated that the group will target multiple ships linked to Israel. They also plan to conduct operations in the Indian Ocean and the Arabian Sea.

Additionally, August is the peak shipping season for the Asia-Europe route, and freight rates are generally higher than they are at present. If the situation in the Red Sea persists, there may be further upside potential. The rise in transportation costs could further push up coffee prices.

India's coffee production is stable, but there are still quite a few crises such as weather and shipping that affect the new crop season's production and export volume.

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