The EUDR norms, which are set to come into effect from December 30, 2025, are aimed at curbing the imports of certain products from the deforested areas
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The European Union’s recent categorisation of India as a low-risk country under the European Union Deforestation Regulation (EUDR) is set to help the coffee exports from the country. Shipments have seen some improvement over the past few weeks, crossing the billion-dollar mark in the first five months, even as they trail the previous year’s levels in volume.
“For the first time, we are seeing some improvement this year, and we are hoping that it will continue. The easing of prices in the recent past has helped, but now prices are going up again. The need to buy coffee is driving the shipments. Also, the placement of India in the least risk category by the EU under the EUDR norms should help improve the shipments,” said Ramesh Rajah, President, Coffee Exporters Association.
The EUDR norms, which are set to come into effect from December 30, 2025, are aimed at curbing the imports of certain products from the deforested areas. It mandates that companies exporting commodities such as coffee and cocoa among others, along with their derived products to the EU markets, must conduct thorough deforestation analysis, detailed risk assessment and risk mitigation to ensure that these goods are not sourced from deforested areas since December 31, 2020. The proposed EUDR emphasises the importance of complying with laws related to environmental and social aspects with the sustainability principles embedded in them.
Already insisting
Buyers from Europe, which accounts for a major chunk of the Indian coffee exports, have already started insisting that the coffee shipped by Indian exporters from July 1 to be compliant with the EUDR norms.
Categorisation of India in the low risk category meant simplified due diligence obligations for operators and traders. This means that they need to collect information for due diligence purposes, but they do not need to assess and mitigate deforestation risks, Coffee Board sources said. A review of the benchmarking by EU is scheduled for 2026.
Rajah said once the Coffee Board App is released, it can help the Indian growers and exporters to comply with the EUDR norms without much difficulty.
As per the Board estimates, coffee exports in value have exceeded $1.01 billion during the January 1-June 6 period this calendar year compared with $780 million a year ago, an increase of 30 per cent. However, volumes are trailing at 1.80 lakh tonnes this year against 2.10 lakh tonnes a year ago.
Prices ease
“Since the beginning of May, the robusta futures market has come down 17 per cent and the arabica futures market has dropped 15 per cent. This is mainly driven by recent reports by the US Department of Agriculture of improved production prospects in several coffee-producing countries, including Brazil, Colombia, Honduras, Peru, Vietnam, and Indonesia.
Further, the robusta harvest has started in Brazil, Indonesia and Uganda (Fly crop), adding to supply. Speculators are unwinding their positions leading to the downtrend. Commentators opine the market momentum is downward, and it could drop further before seeing a significant correction or stabilise. However, even the current prices are significant compared to the past.” said Praveen Kolimarla of Agrani Coffee and Commodities.
“In India, it appears the farmers have sold a smaller proportion of coffee than usual for this time of the year, given the uptrend in coffee prices earlier this year. Export permits were lagging last year in the early parts of the year, but have now caught up. About a month or two ago, Indian differentials were very attractive, and there were good sales. This is reflected in the export numbers now. However, recently the differentials have climbed up again and the demand has subsided,” Kolimarla said.
Published on June 9, 2025