<p>Bengaluru: India’s coffee exports to West Asia have come to a grinding halt, following disruptions in the global logistics network caused by the war in Iran. Also, international freight rates have surged by 50-60% over the past month, significantly increasing costs for exporters.</p>.<p>In several cases, container prices have more than doubled to around $3,200, compared to about $1,500 before the conflict began. Some shipments have reportedly faced costs as high as $4,500 per container.</p>.<p>As a result, coffee exports were adversely impacted in March. Despite the availability of the new crop, India’s total coffee exports recorded only a modest growth of 3%, just crossing the 4 lakh metric tonne-mark for the fiscal year ending March 2026. However, in value terms, exporters saw a stronger performance, with earnings rising 17.7% to $2.10 billion (Rs 18,601 crore).</p>.<p>In comparison, during the previous fiscal year ending March 2025, India exported 3.88 lakh metric tonnes of coffee valued at $1.82 billion (Rs 15,422 crore), according to data from the Coffee Board of India.</p>.<p>“West Asia accounts for about 25% of India’s total coffee exports, and its share has been steadily increasing in recent years. After the introduction of the EU Deforestation Regulation (EUDR), Indian exporters began exploring alternative markets, with West Asia emerging as a key destination. However, the ongoing war has once again created major challenges,” said Ramesh Rajah, President of the Coffee Exporters Association of India.</p>.Three to four cups of black coffee per day can have medicinal benefits, say experts.<p>The EUDR requires that coffee traded with the EU be deforestation-free, legally produced, and traceable to specific geolocation coordinates of farm plots.</p>.<p>Meanwhile, coffee growers in Karnataka are holding back their produce due to a decline in prices during the fourth quarter of the fiscal. Prices have dropped by nearly 20% in Q4, compared to the earlier three quarters.</p>.<p>Since the implementation of the EUDR norms, Indian exporters have actively developed new markets in West Asia and expanded as far as Algeria in North Africa, Rajah noted.</p>.<p>“The situation in West Asia is a fresh setback, especially as we were already facing difficulties in Europe, particularly in Italy and Germany. Italy has been sourcing cheaper coffee from Uganda. We have also explored markets in the East, such as Japan, South Korea, and Australia. However, Vietnam remains a strong competitor in these regions, and it will take time to establish a foothold for Indian Robusta,” he added.</p>.<p>The Coffee Exporters Association has approached the Ministry of Commerce through the Coffee Board, seeking intervention to address the current challenges. “We are yet to receive a response,” Rajah said.</p>.<p>At present, several consignments shipped before the outbreak of the Iran conflict are stranded at ports across West Asia, with importers yet to take delivery.</p>
<p>Bengaluru: India’s coffee exports to West Asia have come to a grinding halt, following disruptions in the global logistics network caused by the war in Iran. Also, international freight rates have surged by 50-60% over the past month, significantly increasing costs for exporters.</p>.<p>In several cases, container prices have more than doubled to around $3,200, compared to about $1,500 before the conflict began. Some shipments have reportedly faced costs as high as $4,500 per container.</p>.<p>As a result, coffee exports were adversely impacted in March. Despite the availability of the new crop, India’s total coffee exports recorded only a modest growth of 3%, just crossing the 4 lakh metric tonne-mark for the fiscal year ending March 2026. However, in value terms, exporters saw a stronger performance, with earnings rising 17.7% to $2.10 billion (Rs 18,601 crore).</p>.<p>In comparison, during the previous fiscal year ending March 2025, India exported 3.88 lakh metric tonnes of coffee valued at $1.82 billion (Rs 15,422 crore), according to data from the Coffee Board of India.</p>.<p>“West Asia accounts for about 25% of India’s total coffee exports, and its share has been steadily increasing in recent years. After the introduction of the EU Deforestation Regulation (EUDR), Indian exporters began exploring alternative markets, with West Asia emerging as a key destination. However, the ongoing war has once again created major challenges,” said Ramesh Rajah, President of the Coffee Exporters Association of India.</p>.Three to four cups of black coffee per day can have medicinal benefits, say experts.<p>The EUDR requires that coffee traded with the EU be deforestation-free, legally produced, and traceable to specific geolocation coordinates of farm plots.</p>.<p>Meanwhile, coffee growers in Karnataka are holding back their produce due to a decline in prices during the fourth quarter of the fiscal. Prices have dropped by nearly 20% in Q4, compared to the earlier three quarters.</p>.<p>Since the implementation of the EUDR norms, Indian exporters have actively developed new markets in West Asia and expanded as far as Algeria in North Africa, Rajah noted.</p>.<p>“The situation in West Asia is a fresh setback, especially as we were already facing difficulties in Europe, particularly in Italy and Germany. Italy has been sourcing cheaper coffee from Uganda. We have also explored markets in the East, such as Japan, South Korea, and Australia. However, Vietnam remains a strong competitor in these regions, and it will take time to establish a foothold for Indian Robusta,” he added.</p>.<p>The Coffee Exporters Association has approached the Ministry of Commerce through the Coffee Board, seeking intervention to address the current challenges. “We are yet to receive a response,” Rajah said.</p>.<p>At present, several consignments shipped before the outbreak of the Iran conflict are stranded at ports across West Asia, with importers yet to take delivery.</p>