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India’s exports of coffee to the US, mainly the instant or soluble coffees, could be impacted by the 26 per cent tariff, exporters said.
“The main problem is going to be for the instant coffees in the US. Indian instant coffee faces competition from Brazil and Ecuador, both of them have a 10 per cent tariff. Because India is going to be at 26 per cent tariff, the instant coffee could be badly hit,” said Ramesh Rajah, President, Coffee Exporters Assocation.
Speciality coffee exports also may be impacted, while there’s no significant impact on the normal green bean shipments, he said.
Smaller market
US is relatively a smaller market for the Indian coffees, accounting for less than 4 per cent of the exports in value terms. India’s coffee shipments to the US stood at over $67 million of the overall exports of $1.8 billion.
In volume terms, India exports about 9,000 tonnes of coffees to the US, while the overall exports during 2024-25 were estimated at 3.89 lakh tonnes.
Bulk of the exports to the US, about 60 per cent is instant coffees, while the rest is normal coffee and also some quantity of speciality coffees.
Brazil, the largest producer of coffees, which has been levied a 10 per cent tariff, will be the biggest gainer in the US market as coffees from Vietnam, the second largest producer, comes under the 46 per cent levy. Most of the coffee producers in Asia and Africa have been slapped with very high tariffs.
No impact on specialty coffee
Rajah said the Indian exporters may have to look at other markets. Already, India suffers a great disadvantage compared with the Central and South American producers and Mexico is a major supplier to the US.
DM Purnesh, President, Speciality Coffee Association of India, said there won’t be any significant impact on the speciality coffee exports to the US as most of the price negotiations with the buyers had already taken place in February-March. There have been one off instances of buyer seeking a discount, he said.
Published on April 10, 2025
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