Coffee Exports Take a Dip with Strengthening Rupee

We all enjoy the sensational aroma of coffee on a regular work day. Coffee has so much to take credit for, right from your performance at work, gym and you know what… Did you know that coffee not only kick-starts your day but also has been kicking monies into exports of India. Go ahead and read about a bit of Business of Coffee while you sip some!


A country is only as good as its exports. This expression is a perfect fit for the Indian food industry. As you must be aware, India is amongst the leading exporters of coffee in the world. Although, We have been suffering relatively well in recent months. Surprisingly, that’s because of a abrupt plunge in the value of the Indian rupee against the dollar. 

India ranks 15th in the top exporting countries of the world with an estimated share of about 140 million USD or 1.8% of the total coffee exports. Indian coffee, grown mostly in southern India under monsoon rainfall conditions, is also termed as “Indian monsooned coffee”. This is a pretty world-class tag. We export about 80% of our premium coffees, Arabica and Robusta

Bearish global market along with strong rupee has lead to a crunch in the exports of coffee, shaking coffee growers in India. Resulting in a significant fall in the prices of Arabica and Robusta beans. The rupee has gained considerable momentum in the first quarter of 2017 and is trading at about INR 65 against the dollar today which is marginally 8 percent higher than INR 68 in early January 2017.

“The fall in prices has hurt our earnings, while increase in wage payouts will add to our costs,” said N Bose Mandanna, a large grower at Suntikoppa, near Madikeri. Sources estimate that about 50-60 per cent of the coffees grown in the 2016-17 season have been traded so far. India harvested around 3.16 lakh tonnes of coffee in 2016-17, about 9 per cent lower than last year’s record output of 3.48 lakh tonnes.

Most of the country is cashing in on the strengthening rupee buy trading heavily in currencies. Coffee exporters have to grow up a fresh ways of sustaining exports.