Bengaluru/Madikeri: India’s coffee exports have witnessed a substantial rise due to increasing global demand for its rich and unique flavors. In the first half of January 2025 alone, the country exported over 9,300 tonnes of coffee. The leading buyers of Indian coffee include Italy, Belgium, and Russia.
India has emerged as the seventh-largest coffee producer globally, with exports soaring to $1.29 billion in FY 2023-24, nearly double the $719.42 million recorded in 2020-21, according to a press release by the Ministry of Commerce & Industry dated 20 January 2025
ADVT
India’s coffee exports have witnessed a substantial rise due to increasing global demand for its rich and unique flavors. Around three-fourths of India’s coffee production consists of Arabica and Robusta beans, which are primarily exported as unroasted beans. However, there is an increasing global demand for value-added products such as roasted and instant coffee, further contributing to the export surge.
Meanwhile, domestic coffee consumption in India is also on the rise, driven by the growing café culture, higher disposable incomes, and a shift in preferences from tea to coffee, according to the Ministry of Commerce & Industry. This trend has been observed across both urban and rural areas. Domestic coffee consumption has risen from 84,000 tonnes in 2012 to 91,000 tonnes in 2023, highlighting a broader shift in drinking habits as coffee becomes a daily staple for many.
India’s coffee is predominantly cultivated in the ecologically rich Western and Eastern Ghats, regions known for their biodiversity. Karnataka leads in coffee production, contributing 248,020 metric tonnes in 2022-23, followed by Kerala and Tamil Nadu. These coffee plantations, which thrive under shaded conditions, not only bolster the coffee industry but also play a crucial role in preserving the environment and maintaining ecological balance in these biodiversity hotspots.
To enhance coffee production and meet the increasing domestic and international demand, the Coffee Board of India has introduced several key initiatives. Through the Integrated Coffee Development Project (ICDP), efforts are being made to improve yields, expand cultivation into non-traditional regions, and promote sustainable coffee farming. These initiatives are part of a broader strategy to strengthen India’s coffee sector, enhance productivity, and bolster global competitiveness, release stated.
One notable success story is the Araku Valley, where nearly 150,000 tribal families, in collaboration with the Coffee Board and the Integrated Tribal Development Agency (ITDA), have increased coffee production by 20%. This achievement has been supported by financial assistance from the Girijan Co-Operative Corporation (GCC). The success of the Araku Valley initiative demonstrates how coffee farming can empower local communities and contribute to the vision of Aatmanirbhar Bharat.
The Ministry of Commerce & Industry highlights that these initiatives, coupled with export incentives and logistical support, are playing a critical role in strengthening India’s coffee sector. By improving both domestic production and international competitiveness, India is steadily cementing its position as a leading player in the global coffee market.
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