WEST ASIA CONFLICT & COFFEE PRICES

NEWS: West Asia conflict → impacted global coffee trade → Karnataka coffee growers facing sharp price decline

CONTEXT

• Prices stable during harvest (Dec 2025–Feb 2026) → Fell after conflict escalation in March → West Asia = key export market for Indian coffee

HIGHLIGHTS

• Coffee prices dropped by ~20–30%
• Export disruptions → reduced demand from Gulf countries
• Europe remains largest market, but West Asia significant

IMPACT ON FARMERS

• Unsold stock lying in godowns
• Cash flow issues → unable to fund plantation activities
• Difficulty in: Paying labour, Buying fertilizers, Conducting pruning
• Forced distress sale at low prices
• Loan repayment pressure increasing

EXPORT DATA TRENDS

• India exported higher quantity overall
• But price slump → reduced profitability
• Major importers (West Asia): Turkey, UAE, Jordan, Libya, Saudi Arabia

KEY ISSUE

• Higher exports ≠ higher income
• Global geopolitical tensions → price volatility

KEY TAKEAWAY

• Global conflicts → direct impact on agri-commodity prices
• Highlights vulnerability of export-dependent farmers