According to a US Department of Agriculture (USDA) report, India’s exports look set to slump by 16.7% in 2011-2012.

The report estimated that this season’s overseas shipments to September, 2010, will amount to 2,88,600 tons.

“Exports are expected to decline to 4 million 60-kg bags in 2011-12, given tight carry-in stocks and lower production,” according to the USDA Coffee Annual Report. “However, if international demand remains strong, exports could increase at the expense of domestic consumption.” 

The USDA report noted that Indian robusta enjoys favor with international buyers and said that high coffee prices are encouraging importers to look more to India as an alternative supplier adding that Europe continues to be the leading buyer of Indian coffee

India’s domestic segment is continuing to heat up and demand for good coffee to service the domestic market is undoubtedly beginning to be noticed by exporters who have historically influenced domestic consumption patterns.