West Asia conflict hits coffee prices; Karnataka growers hold back produce

Coffee growers in Karnataka are withholding their produce as prices have declined sharply over the past month, following disruptions triggered by the ongoing conflict in West Asia.

Planters say prices, which remained stable and favourable during the harvesting season from December 2025 to February 2026, began to fall soon after the conflict escalated in March. The decline, estimated at nearly 20% to 30%, has been attributed to disruptions in export markets, particularly in the Gulf and West Asian region, a key destination for Indian coffee.

Poovanna B.B., a small coffee planter from Virajpet in Kodagu, said that he had completed harvesting in February but has been unable to sell his produce due to the sudden drop in prices.

“We were getting good prices during the harvest season, but after the West Asia conflict began, prices dropped significantly. Now, our coffee is lying in the godown as we are reluctant to sell at such low rates,” he said.

Mr. Poovanna added that the situation has put growers in a difficult position, as they depend on timely sales to fund plantation activities. “We need money for fertilisers and to pay labourers for works like pruning, which begins this month. With prices so low, it is difficult to proceed with these essential activities,” he said.

Planters sell amid losses

Planters in Chikkamagaluru also shared similar concerns. Ravindra Kumar, a grower from Masagali village in Chikkamagaluru, said that many estate owners are being forced to sell their produce at lower prices despite incurring losses, as they have to repay bank loans taken for plantation activities.

“This is the time when we usually sell our produce, clear our annual loans, and use the remaining income for maintenance and household expenses. But with such low prices, we are not making any profit. Still, we have no option but to sell, as loan repayments cannot be delayed,” he said.

West Asia, Gulf drives exports

According to export data from the Coffee Board of India for the period between January 1 and March 25, West Asia and Gulf countries continue to account for a significant share of India’s coffee exports. Turkey imported 4,830.722 tonnes during the period, closely followed by the United Arab Emirates at 4,712.609 tonnes. Jordan imported 3,964.182 tonnes, while Libya (2,631.090 tonnes), Egypt (2,619.012 tonnes), Kuwait (2,079.678 tonnes), and Saudi Arabia (1,585.369 tonnes) were among other major buyers in the region.

Despite the current price slump, overall export volumes have shown growth. India exported 1,20,874 tonnes of coffee between January 1 and March 25 this year, compared to 97,667 tonnes during the same period last year.

Europe continues to dominate as the largest destination for Indian coffee. Italy remains the top importer with 22,332.888 tonnes, followed by the Russian Federation (10,246.564 tonnes) and Germany (10,205.247 tonnes). Belgium, Turkey, and the UAE also feature among the leading importers.

However, growers say that higher export volumes have not translated into better returns at the farm level due to prevailing geopolitical uncertainties. “With prices remaining unstable, we are now adopting a wait-and-watch approach, hoping for a recovery in the coming weeks. Until then, we continue to hold on to our produce, even as financial pressures mount,”said Mr. Poovanna.