India's coffee output to fall to lowest in two decades

India's coffee output in the next crop year is expected to drop by around a quarter to the lowest in nearly two decades as poor rains and hot temperatures hit plantations during the crucial flowering stage, as per the data compiled by the Karnataka Planters Association (KPA).

The southern state of Karnataka accounts for about 70% of India's total output. India is likely to produce 350,000 tons coffee in the current season ending on September 30. With a 25% reduction in Karnataka, production could drop to 263,000 tons in the 2016-17 crop year, the lowest since 1998/99.

India, which started coffee cultivation in 1,670 with seven smuggled beans, produces mainly robusta, used primarily in instant coffee. India's coffee exports have risen 19.4% to 213,187 tons since the start of current marketing year on October 1.