India: Coffee Semi-annual

FAS India forecasts marketing year (MY) 2022/23 coffee production (Oct/Sep) at 6.25 million 60-kilogram bags, nine percent higher than the official USDA estimate on above normal southwest monsoon rains (Jun/Sep) expected to improve yields, especially for Robusta varieties in major growing regions. Farmgate prices have dropped over the last six months due to expectation of a large crop; however, producers continue to face rising input costs. Post forecasts exports to rise by four percent to 6.23 million 60-kilogram bags due to higher exportable surplus. The surge in domestic coffee consumption is expected to be largely driven by at-home coffee consumption, as many workplaces have adopted hybrid working models. Carryover stocks are likely to remain limited due to strong export prospects.