India’s coffee export industry is facing significant challenges as the ongoing crisis in West Asia disrupts shipping routes, particularly through the Strait of Hormuz. As of March 27, 2026, approximately 300 containers, each carrying 20 tonnes of coffee, are stranded at various ports or moving slowly, causing uncertainty and increased costs for exporters.
Ramesh Rajah, President of the Coffee Exporters Association of India, highlighted the severe impact on India’s coffee export to West Asia and Europe, with shipments to Jebel Ali Port in Dubai facing delays, rerouting, or offloading at distant ports such as Khor Fakkan, Sohar, Salalah, or Jeddah. This situation has escalated delivery costs by $5,000 to $6,000 per container, in addition to regular freight charges.
The Iran-Israel conflict has exacerbated logistics issues, with Salman Baseer, Chairman of the Karnataka Planters Association, noting the significant rise in freight and landing charges. Coffee shipments intended for West Asia before Ramzan remain stranded, leading to inventory delays and market volatility.
Efforts to address the crisis are ongoing, with the Coffee Board of India and the Ministry of Commerce being informed. However, new coffee contracts are unlikely until shipment charges are rationalized. Meanwhile, the disruption has opened opportunities for coffee producers in Africa and Central America as Indian exports struggle to meet global demand.
Published in SouthAsianDesk, March 28, 2026
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