**India’s Coffee Exports Expected to Decline Amid Market Volatility**
Allana Consumer Products Ltd, the fourth-largest coffee exporter in India, anticipates a slowdown in coffee exports to between 22,000 and 25,000 tonnes for the current fiscal year due to unpredictable global market conditions. This projection comes after the company exported 26,300 tonnes of coffee in the previous financial year.
As of the end of August, Allana has successfully exported approximately 11,000 metric tonnes of green coffee and expects to achieve an additional 11,000 to 15,000 tonnes by the end of the fiscal year, according to C P Bopanna, associate director of the coffee division. Over the past two years, the company has reduced its export volumes, citing significant market volatility that has complicated growth planning. Bopanna noted, “In the past 1-1.5 years, we have experienced volatility not seen in the last 40 years, making it challenging to project growth rates.”
In light of these challenges, Allana is focusing on maintaining profit margins rather than pursuing aggressive revenue growth. The company is strategically buying and trading coffee based on market opportunities. Historically, Allana’s export volumes have ranged from 25,000 to 29,600 tonnes over the last five years, with key markets including the Middle East, North Africa, Russia, Europe, South Korea, and Southeast Asia. The company holds a dominant market share of 60-70% in the Middle East, with the remainder distributed among Europe and other regions.
Exports to the United States, which have already been minimal due to high freight costs, are expected to decline further due to tariffs. Bopanna explained that it is more economical for U.S. buyers to source coffee from Brazil, a leading global producer.
Allana operates processing facilities with a total capacity of 20,000 tonnes located in Hassan, along with a monsooning plant in Mangalore. The company also utilizes outsourced and leased facilities in Chikmagalur, Kushalnagar, and Kochi. Bopanna stated, “Currently, there is no need to increase capacity, as we have managed quantities between 25,000 and 35,000 tonnes across our five units.”
Regarding India’s coffee production outlook, Bopanna referenced the latest Coffee Board report, which predicts slight growth in production for the 2025-26 period at 4.03 lakh tonnes. However, he cautioned that untimely rains could lead to a minor decrease from earlier estimates, emphasizing that the true condition will only be clear once the harvest begins.
**FAQ**
*What factors are affecting India’s coffee export projections?*
India’s coffee export projections are being impacted by global market volatility, high freight costs, and tariffs on exports to the U.S., leading to a cautious approach in planning and growth strategies.