Indian coffee brews global demand, driving export surge

India’s rich coffee legacy, which began centuries ago with the legendary Baba Budan’s introduction of seven Mocha seeds to Karnataka’s hills, has grown into a global success story. From its humble beginnings in the 1600s, India has emerged as the world’s seventh-largest coffee producer, with exports reaching an impressive $1.29 billion in FY 2023-24, nearly doubling the $719.42 million recorded in 2020-21.

This remarkable growth is driven by increasing global demand for India’s distinctive Arabica and Robusta coffee beans, which account for approximately three-fourths of the nation’s coffee production. In the first half of January 2025 alone, India exported over 9,300 tonnes of coffee, with major importers including Italy, Belgium, and Russia. While unroasted beans remain a significant export, the rising demand for value-added products such as roasted and instant coffee is further fueling this boom.

Growing domestic consumption and cafe culture

India’s love affair with coffee is not limited to exports. Domestic coffee consumption has been steadily rising, increasing from 84,000 tonnes in 2012 to 91,000 tonnes in 2023. This surge reflects changing preferences, as coffee increasingly becomes a daily staple in both urban and rural areas. The growth of cafe culture and higher disposable incomes have played a pivotal role in this shift, with coffee gaining popularity over traditional tea.

Sustainable cultivation in biodiversity hotspots

India’s coffee is cultivated in the ecologically rich Western and Eastern Ghats, regions renowned for their biodiversity. Karnataka leads the way, producing 248,020 MT in 2022-23, followed by Kerala and Tamil Nadu. The shaded plantations in these areas not only contribute to India’s coffee production but also play a crucial role in preserving the environment and maintaining the ecological balance of these biodiversity hotspots.

Initiatives to boost production and sustainability

To meet rising domestic and international demand, the Coffee Board of India has launched several initiatives under the Integrated Coffee Development Project (ICDP). These initiatives aim to improve yields, expand cultivation into non-traditional regions, and ensure the sustainability of coffee farming. A prime example of this success is the transformation of 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 effort, supported by loans from the Girijan Co-Operative Corporation (GCC), underscores how coffee farming can empower communities and contribute to the vision of Aatmanirbhar Bharat.

Strengthening India’s global competitiveness

Export incentives and logistical support are further bolstering India’s coffee industry. These measures are helping to enhance productivity, improve quality, and strengthen India’s global competitiveness. By focusing on both domestic and international markets, India is firmly establishing itself as a leading player in the global coffee market.

India’s coffee journey, deeply rooted in history and enriched by sustainable practices, continues to inspire and thrive. With robust initiatives and growing demand, Indian coffee is brewing a legacy of global recognition and success.

Source - PIB - Ministry of Commerce & Industry