FTAs set to expand global market access and growth opportunities for Indian coffee exporters

Coffee exports have grown significantly in 2025 in value term on the back of high coffee prices in the international market. However, prices have fallen by 25-30 per cent in recent months owing to hopes of better harvest in Brazil and Vietnam.

In a conversation with the Bizz Buzz, IB Bopanna, Founder of Chombuka Coorg Coffee Company and a prominent Indian coffee exporter said that India’s exports in 2026 may be lesser than last year owing to price drop.

When asked about the number of FTAs signed by India in recent months, he said these steps improve prospects of Indian exports to trading partner nations. Middle East, Korea, Taiwan, South East Asia and other countries provide good opportunities for Indian coffee, he added.

India has signed two important FTAs (Free Trade Agreements) with the US and European Union in recent months. How do you see its impact on the export prospects of Indian coffee? Can you provide some perspective in this matter?

India signing FTAs with the US and Europe definitely augurs well for the coffee industry. Eu-rope has traditionally been the largest buyer for Indian coffee. But the US has not been a strong market for Indian coffee. They procure coffee from South American countries like Brazil.

However, both these FTAs are steps in the right direction. Signing of FTA with the Eu-ropean Union may not provide immediate upside to the coffee exports. Exports to the Europe has been steady over the years. The major concern has been not the tariff barriers but the non-tariff barriers.

So, we have to sort out the non-tariff barriers with the EU for improving the export prospects of Indian coffee. Moreover, the fine print of the EU deals will have to be seen for gauging the exact impact on Indian coffee exports

Brazil has been the largest supplier of coffee to the US market but the US has imposed 50 per cent tariff on Brazilian goods. Is that supporting Indian exports to the US market? What is your view on this matter?

Not exactly. Though Brazilian coffee exports have to face 50 per cent tariff in the US market, exporters are smart enough to diversify their export base. Some of the Brazilian coffee is be-ing rerouted through other neighbouring countries.

We have to understand that exporters are dealing with international trade and they find out ways to overcome such barriers. Both importers and exporters will always find a way to do business despite barriers. However, some Indian exporters are definitely exploring prospects of the US market.

India has signed multiple FTAs with countries like the United Kingdom, UAE, Australia, Oman, EFTA nations and is in the process of signing many such FTAs in the future as per reports. Will it increase the prospects of Indian coffee exports?

FTAs with other countries definitely help exporters to explore market in those countries. In that way, these FTAs complement the growth of Indian coffee industry.

Indian coffee has a promising prospect in countries like Middle East, Korea, Taiwan, South East Asian nations and others. So, opportunities are good in these countries, which will help Indian coffee to ex-pand its market and help exporters to diversify their geographical reach.

Coffee exports from India had grown by 22.5 per cent to reach $2.05 billion in 2025 in value term though there was a reduction in export shipments. How do you see the ex-port potential in 2026?

Coffee exports have grown in 2025 in value term for sure though volume has declined. How-ever, it may not be possible to repeat this performance in 2026. You see, coffee prices have fallen by 25-30 per cent in recent months.

This is mainly because of expectation of a bumper crop in Brazil after receding of drought conditions. (Brazil is the largest producer of arabica coffee in the world).

Similarly, coffee production in Vietnam, which is one of the largest pro-ducers of robusta coffee, is expected to be good. Even production in most growing regions is likely to be better this year.

This is because planters have taken several measures like infra-structure development, planting new plants, and others, which will raise production levels.

Uptick in coffee pricing seen in past few years has helped coffee planters to reinvest surplus capital into their plantations. So, as coffee prices have gone down, touching last year’s ex-port figure seems difficult.

But rupee has depreciated significantly against the US dollar. Will that provide some kind of cushion to export earnings?

Yes, it will provide some cushion but may not offset all of it. Because, coffee pricing has gone down by 25-30 per cent but rupee has not depreciated that much.

Also, importers are very dynamic and keep track of the exchange value. When the currency depreciates, they ask for passing on some of the benefits to them. So, exchange value doesn’t completely translate into earnings.

How is the overall coffee production likely to be this year in India?

Harvesting is going on now in many plantations. Production is likely to be lesser than last year. There was higher rainfall last year. There is a likelihood of drop in production this year.

How do you view the policy measures announced in the Union Budget 2026 with re-spect to plantation industry? Can you provide some perspective into this matter?

There are some measures which are helpful but overall, it is not supportive to the plantation sector. Indian exporters are competing against internal growers and exporters.

The cost of capital of these countries is lesser than India. So, some kind of interest subvention scheme could have helped the sector. Similarly, the payout through RoDTEP ((Remission of Duties and Taxes on Exported Products) should be prompt without any delay.

That will be helpful to the exporters. We have to be competitive in the market. Information is so fast that pricing nego-tiation is done by importers once a new piece of information comes.

Therefore, exporters should be paid promptly for maintaining the cost competitiveness. In this context, the budget has maintained the status quo.

How do you see the rising consumption of coffee in India? Is that good news for the cof-fee industry?

Yes, there is rising consumption of coffee in India. Several instant coffee companies are wit-nessing growth. More events revolving around coffee are happening in India and this should increase for generating more interest among consumers.

This will increase interest among consumers for more premium coffee variants. Overall, as the coffee consumption grows in India, that brings good news for the coffee industry. But it is not at a stage all the domestic consumption can be consumed in India.