Bengaluru
The current crisis has put Indian coffee exports to Ukraine and neighbouring countries in jeopardy, the Coffee Board said on Friday.
So far, (April-Jan.) this fiscal, India had exported 6,604 metric tonnes of green bean, instant and roast and ground coffee to Ukraine and 23,519 metric tonnes to Russia. Coffee exports to Ukraine, in fact, peaked at 7,327 metric tonnes during fiscal 2018-19, and in 2019-20 it was 6,947 metric tonnes.
CIS countries were traditionally the major soluble/instant coffee importers from India. Russia currently accounts for 75% of this, while Ukraine alone has more than 20% share, according to data shared by Coffee Board.
“The Russia-Ukraine war will certainly impact Indian coffee exports to Ukraine and its neighbouring countries,” said Dr. K.G. Jagadeesha, CEO and Secretary, Coffee Board.
According to coffee exporters, in addition to the immediate impact on exports, the war could also have an indirect and long-term impact on the overall coffee exports from India to Ukraine and neighbouring coffee markets
“The Russia-Ukraine war is likely to push up prices of fuel, metal/aluminium (instant coffee is mostly exported in metal cans and containers) and packaging materials. It could also spiral logistics costs,” said Ramesh Rajah, president of the Coffee Exporters Association. “This means, the overall cost of exports will certainly go up and buyers and sellers are already worried about it,” he said. “Also, all these are happening when the prices of packaging raw material had already gone up by 30% recently,” Mr. Rajah added.
Ukraine is one of the largest importers of coffee in that region, while Russia is one of the top 5 buyers of Indian coffee. “Although Ukraine is largely a tea-consuming country, it has a very mature coffee culture, thanks to Turkish and Ottoman influence,” he said. “The current uncertainty is certainly worrying, both for exporters and as well as importers of all varieties of Indian coffees,” he added.
