New Delhi [India], January 20 : India is now the seventh-largest coffee producer globally with exports reaching USD 1.29 billion in financial year (FY) 2023-24, almost double the USD 719.42 million in 2020-21, the Ministry of Commerce and Industry stated in release.
Citing the reason behind the growing demand, the Ministry added that India's coffee exports have grown significantly due to the increasing global demand for its rich and unique flavors.
In the first half of January 2025 India exported over 9,300 tonnes of coffee with top buyers including Italy, Belgium, and Russia.
Approximately three-fourths of India's coffee production consists of Arabica and Robusta beans. These are primarily exported as unroasted beans.
However, there is a growing demand for value-added products like roasted and instant coffee, further fueling the export boom, the release added.
Due to rise of cafe culture, higher disposable incomes and a growing preference for coffee over tea, coffee consumption in India is also steadily increasing.
This trend has been observed particularly in both urban and rural areas. Domestic consumption has increased from 84,000 tonnes in 2012 to 91,000 tonnes in 2023, the release added.
This surge reflects a broader shift in drinking habits, as coffee becomes a staple in daily life, release added.
India's coffee is primarily grown in the ecologically rich Western and Eastern Ghats, areas famous for their biodiversity. Karnataka leads in production, contributing 248,020 MT in 2022-23, followed by Kerala and Tamil Nadu.
These areas are home to shaded plantations that not only support the coffee industry but also play a vital role in preserving the natural environment, helping to maintain the ecological balance of these biodiversity hotspots.
To enhance coffee production and meet growing domestic and international demand the Coffee Board of India has launched several important initiatives.
Through the Integrated Coffee Development Project (ICDP) the focus is on improving yields, expanding cultivation in non-traditional regions and ensuring the sustainability of coffee farming, the release added.
These measures are part of a comprehensive strategy to strengthen India's coffee industry, increase productivity and improve its global competitiveness, the ministry said.
A prime example of the success of this is 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 per cent.
This achievement is backed by loans from the Girijan Co-Operative Corporation (GCC), the release added. It shows how coffee farming empowers communities and supports the vision of Aatmanirbhar Bharat, the ministry said.
The Commerce and Industry Ministry further added that these initiatives, combined with export incentives and logistical support, are playing a crucial role in expanding India's coffee industry, the ministry stated. They help improve both domestic production and global competitiveness, firmly establishing India as a leading player in the global coffee market, the release added.
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