In a significant shift in the global coffee trade, Indian coffee exporters are experiencing a notable increase in demand from European buyers. This surge is attributed to European companies building up their inventories ahead of the impending European Union Deforestation Regulation (EUDR) compliance deadline. The EUDR, set to take effect on December 30, 2024, aims to minimise the importation of products linked to deforestation. It mandates strict due diligence and traceability measures for various commodities, including coffee, potentially impacting Indian exports. Ramesh Rajah, President, Coffee Exporters Association, stated, “We are witnessing a substantial front-loading of coffee orders as European customers prepare for the EUDR deadline. There’s a noticeable build-up of inventories in Europe, with numerous shipments already in progress.” Data supports this trend, showing a 16 per cent increase in India’s coffee shipments from January 1 to June 21, 2024, compared to the same period last year.
