
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:
- 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.
- 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.
- 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.
- 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.
- 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.