Indian coffee exports surge to $1.29 billion in FY24, fueled by rising global demand and sustainable initiatives

India’s coffee industry has witnessed remarkable growth, with exports doubling from $719.42 million in FY21 to $1.29 billion in FY24. This growth is driven by the rising global demand for Indian coffee’s rich flavors and the industry’s focus on sustainability and innovation.


Key Highlights:

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  1. Export Growth:
    • Coffee exports reached $1.29 billion in FY24, almost doubling from FY21 levels.
    • Over 9,300 tonnes of coffee were exported in the first half of January 2025.
    • Top buyers include Italy, Belgium, and Russia.
  2. Domestic Consumption:
    • Domestic coffee consumption has grown from 84,000 tonnes in 2012 to 91,000 tonnes in 2023.
    • The rise of café culture, increased disposable incomes, and growing coffee preferences over tea have contributed to this trend.
  3. Production Insights:
    • India is the 7th largest coffee producer globally, with Karnataka leading in production (248,020 MT in 2022-23), followed by Kerala and Tamil Nadu.
    • Coffee is grown in biodiversity-rich regions like the Western and Eastern Ghats, supporting both agriculture and environmental sustainability.
  4. Sustainability Initiatives:
    • The Coffee Board of India launched the Integrated Coffee Development Project (ICDP) to boost yields, expand cultivation to non-traditional regions, and ensure sustainability.
    • Araku Valley, supported by tribal families and agencies, increased production by 20%, showcasing a model for community empowerment.
  5. Growing Demand for Value-Added Coffee:
    • Indian coffee exports primarily consist of Arabica and Robusta beans, but there is increasing global demand for roasted and instant coffee.

Industry Support and Vision:

  • Government initiatives, including export incentives and logistical support, are driving India’s global coffee competitiveness.
  • Collaboration with tribal communities and co-operative agencies has strengthened local economies while aligning with the vision of Aatmanirbhar Bharat (self-reliant India).

Conclusion:

India’s coffee industry is a testament to sustainable growth, innovation, and community empowerment. With increasing global demand, strategic government initiatives, and rising domestic consumption, India is poised to solidify its position as a global leader in the coffee market.