Coffee exports from India are facing a major challenge in European markets. Countries like Vietnam, Uganda and Brazil offer their produce at low prices, which is of great concern to coffee growers in Wayanad, Karnataka and Tamil Nadu. The major markets for Indian coffee in Europe are Italy, Germany, Belgium and Spain. Apart from Robusta and Arabica, India also exports instant coffee to these markets.
About 70 per cent of the coffee produced in India is exported. Due to better harvests and the depreciation of the currency, more coffee was arriving in foreign markets at lower prices from Brazil for a few months. Vietnam, a major producer, also began to supply coffee at lower prices.