Allana Consumer Products Ltd Faces Export Challenges Amid Volatile Markets

Allana Consumer Products Ltd, a major coffee exporter, predicts a slowdown in exports to 22,000-25,000 tonnes this fiscal year due to global market volatility. The company, which exported 26,300 tonnes last year, is shifting focus to profit margins amid growing challenges in maintaining export volumes.

Allana Consumer Products Ltd, India's fourth-largest coffee exporter, is bracing for a reduction in exports to between 22,000-25,000 tonnes this fiscal year, citing volatile global markets as a primary challenge. Last year, the company managed to export 26,300 tonnes.

Speaking to PTI, C P Bopanna, associate director of Allana's coffee division, mentioned that 11,000 metric tonnes of green coffee had already been exported by the end of August. Bopanna outlined that an additional 11,000 to 15,000 tonnes are expected for the remainder of the year.

Market instability, which has intensified over the past two years, is pushing the company to prioritize profit margins over revenue growth. Export volumes have fluctuated between 25,000 to 29,600 tonnes over the past five years with a strong presence in the Middle East. The U.S. market continues to shrink due to tariffs and high freight costs, making Brazil a more viable option for American buyers.

(With inputs from agencies.)