Coffee Export Declines :The country’s coffee exports are continuously falling. It has registered a decline during the last decade. The demand for Indian coffee is declining due to the inability to properly meet the growing demand for value addition at different levels of coffee processing across the globe. The demand for Indian coffee has decreased due to the increasing demand for specialty coffee.
Lack of value addition is reducing the demand for Indian coffee
In a report by global trade finance company Drip Capital, the figure of decline in India’s coffee exports has been given. It cited data and insights from Indian coffee exporters. The report said that India’s coffee exports have declined in the last decade due to lack of value addition. Citing the data of Directorate General of Foreign Trade (DGFT) of India, the report said that during the year 2020-21, India exported a lot of $ 720 million. Of this, 42 percent was Robusta coffee beans. Between 2011-12 and 2020-21, the value of coffee exported from India registered an annual decline of three percent. In the financial year 2011-12, the value of coffee exported from India was more than $ 950 million. It was the world’s eighth largest coffee exporter by volume during that time.
Dollar earnings from coffee exports hit nine-year low
According to the report, in the financial year 2019-20, India’s total coffee exports fell in dollar value to a nine-year low. In this, a decline of 44 percent was registered in April 2020. COVID-19 has also played some role in this. This crisis had a major impact on the export of Green Coffee Beans in March. This is a very important time for the harvesting and export of Robusta coffee. COVID-19 has also changed the pattern of consumption of coffee. During this time there was also a change in the demand for the product mix. There has been an increase in the sales of coffee machines across the world because because of COVID, coffee drinkers preferred to make it at home instead of going out and drinking coffee.