India’s coffee exports surge on global demand

India’s coffee exports have reached $1.29 billion in the 2023-24 financial year, nearly doubling from $719.42 million in 2020-21. The country is also the seventh-largest coffee producer now.

During the first 15 days of this month India exported over 9,300 tonnes of coffee to various countries, with Italy, Belgium and Russia accounting for a major share.

Exports have been boosted by both increasing global demand for coffee as also the rich and unique flavour of Indian coffee. Arabica and Robusta varieties account for nearly three-fourths of India’s coffee production.

India has traditionally been exporting coffee in the form of unroasted beans. However, there is a growing demand for roasted and instant coffee as well as other value-added products.

Domestic demand for coffee has also been expanding due to changing lifestyles, a shift in preference from tea to coffee, mostly in urban areas. The preference for coffee is also increasing in rural areas, reflecting an increase in disposable incomes and a broader shift in consumption habits.

Domestic coffee consumption has increased from 84,000 tonnes in 2012 to 91,000 tonnes in 2023.

Karnataka accounted for a major share of India’s coffee production, contributing 248,020 tonnes in 2022-23. Kerala and Tamil Nadu accounted for the remaining. 

The Coffee Board of India, the primary institutional support to coffee growers, has launched several initiatives to enhance coffee production so as to meet growing domestic and international demand. The Integrated Coffee Development Project (ICDP) focuses on improving yields, expanding cultivation to new regions and ensuring sustainability of coffee farming. 

Coffee Board in association with the Integrated Tribal Development Agency (ITDA) has introduced coffee cultivation in the Araku Valley, where nearly 150,000 tribal families have been initiated to coffee cultivation. This, according to the government, has helped increase coffee production in India by 20 per cent.

Combined with export incentives and logistic support, these initaitives are key to expanding India’s coffee industry.