Coffee exports declining, Covid causes shift in consumption patterns: Report

By: |
July 23, 2021 8:27 AM

The ‘Coffee Report’ by the fintech company, based in Palo Alto , mentions that the pandemic led to a shift in consumption patterns and sales of coffee machines soared as coffee enthusiasts turned towards making the beverage at home rather than venturing outside.

coffee exports

India’s coffee exports are seen declining for the past few years and fell to a nine-year low partly due to COVID-19, Drip Capital,a global trade finance company, said on Thursday. The ‘Coffee Report’ by the fintech company, based in Palo Alto , mentions that the pandemic led to a shift in consumption patterns and sales of coffee machines soared as coffee enthusiasts turned towards making the beverage at home rather than venturing outside.

India is the eighth-largest producer and exporter of coffee by volume. As per the Directorate General of Foreign Trade, India exported nearly $720 million worth of coffee in FY21, out of which 42% mainly constituted Robusta coffee beans exports.

However, coffee exports have declined at a CAGR of -3% between FY12 and FY-21, according to the report. “The fall can partly be attributed to Covid-19, wherein in FY19-20, India’s overall coffee exports reached a nine-year low in dollar value terms and plummeted by 44% in April 2020. Moreover, the crisis significantly impacted green coffee beans’ shipments in March 2020, which is the crucial period for Robusta coffee harvesting and exports,”Pushkar Mukewar, co-founder and CEO, Drip Capital, said. The report says that India could benefit significantly from value addition across the various stages of coffee processing.

 

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