Coffee exports rise as Europe braces for European Union Deforestation Regulation

Indian coffee exporters see surge in demand from Europe ahead of EUDR deadline, impacting Indian exports positively.

Indian coffee exporters are witnessing an increase in demand from European buyers who are seen building inventory ahead of the deadline for compliance to the proposed European Union Deforestation Regulation (EUDR) norms.

The EUDR is aimed at minimising the importation of products linked to deforestation and requires strict due diligence and traceability measures for commodities such as coffee and is likely to have an impact on the Indian exports.

The EUDR norms, which applies to a wide range of products, including cattle, cocoa, coffee, oil palm, rubber, soya and wood, requires businesses to comply with its requirements by December 30 this year.

“With the EUDR coming up there’s lot of front-loading of coffees as European customers are buying ahead of the deadline.

“We are seeing a build-up of inventories in Europe. Already, a lot of shipments are taking place,” said Ramesh Rajah, President of the Coffee Exporters Association.

Reflecting the trend, India’s coffee shipments for the January 1-June 21 period this year were up 16% at more than 2.37 lakh tonne against 2.04 lakh tonne in the same period a year earlier.

This also includes the re-exports, which have grown by 18.3% to 53,497 tonne during the period against more than 45,213 tonne a year earlier.