High farm-gate prices, looming EUDR rules hit coffee exports

Exporters stare at 50,000 tonnes of unsold stock in 2025.

Bengaluru: High farm-gate prices and looming European Union Deforestation Regulations (EUDR) is likely to result in the loss of export markets in Europe for Indian coffee exporters. 

While a majority of Indian coffee growers are yet to comply with the EUDR rules, the farm-gate prices of coffee are ruling at a record level of Rs 440 to Rs 460 per kg. As a result, coffee traders are delaying their purchases from the farmers. 

It is estimated that about 50,000 metric tonnes of Indian coffee will be left unsold for the growers and India’s exports may be far lower than last year, according to the Coffee Exporters’ Association of India.

During the period from January 1 to September 1, 2025, India’s coffee exports have seen a decline of 11.32% to 2,68,452 metric tonnes. During the corresponding period last year, coffee exports stood at 3,02,752 metric tonnes, according to data available on the Coffee Board of India website. However, in value terms, exporters have earned Rs 12,673 crore during this period as against Rs 9,854 crore in the same period last year.

“Italian buyers are increasingly rejecting Indian coffee due to very high prices quoted by Indian exporters. Italy has been India’s largest market for coffee till now and they find our coffee prices are much higher compared to Uganda. Currently, farm-gate prices for raw coffee are very high and as a result Indian exporters are forced to quote high prices to buyers in Italy,” Ramesh Rajah, President of the Coffee Exporters’ Association of India told DH.

What are EUDR regulations

The goal of EUDR is to promote transparency and traceability in supply chains, making it easier for consumers to make informed choices about the products they purchase. The key objectives of the EUDR are to block products tied to deforestation and forest degradation, reduce the EU’s carbon footprint by promoting climate‑friendly sourcing, environmental standards, and anti‑corruption standards.

Large coffee planters and exporters must comply with EUDR regulations by December 30, 2025, while small and growers and traders have time till June 30, 2026 to comply.

India’s Robusta coffee is at least 8-9% higher compared to that of Ugandan coffee. Indian Robusta export price is about $5200 to $5250 per tonne FoB compared to $4800 per tonne FoB quoted by Ugandan exporters.

“Our Italian buyers are complaining that our coffee is expensive when compared to Ugandan coffee. It is an unusual situation for us this year as we will be carrying forward about 50,000 tonnes of unsold coffee to the next season. It is normally in the range of 10,000 to 25,000 metric tonnes,” Rajah said.

In the 2024 calendar year, India exported 4,02,526 metric tonnes of coffee valued at Rs 14,046 crore. India largely exports to Italy, Germany, Russian Federation, Belgium, UAE, and Turkey. 

As part of its derisking strategy, Coffee Exporters’ Association is looking at developing new export markets in North Africa, and West Asia, Rajah said.