India's coffee exports soar to $1.29 billion as global demand rises

New Delhi, Jan 20: India’s rich history with coffee began in the 1600s when the revered holy saint Baba Budan brought seven Mocha seeds to Karnataka's hills. Planting these seeds in the courtyard of his hermitage at Baba Budan Giri set the stage for India's emergence as a significant coffee producer.

Over the years, coffee cultivation evolved into a thriving industry, with Indian coffee now enjoyed worldwide. Today, India ranks as the seventh-largest coffee producer globally, with exports reaching $1.29 billion in FY 2023-24, nearly double the $719.42 million recorded in 2020-21.

The surge in India’s coffee exports is fueled by rising global demand for its distinctive flavors. In the first half of January 2025, India exported over 9,300 tonnes of coffee, with major buyers including Italy, Belgium, and Russia. Approximately 75% of India’s coffee production consists of Arabica and Robusta beans, mainly exported as unroasted beans. However, there is a growing market for value-added products like roasted and instant coffee.

Additionally, the rise of café culture and increased disposable incomes have contributed to a steady increase in coffee consumption within India. Domestic consumption rose from 84,000 tonnes in 2012 to 91,000 tonnes in 2023, reflecting a broader shift in drinking preferences.

India's coffee is primarily cultivated in the biodiverse Western and Eastern Ghats, with Karnataka leading production at 248,020 metric tonnes in 2022-23, followed by Kerala and Tamil Nadu. To boost coffee production and meet growing demand, the Coffee Board of India has launched several initiatives, including the Integrated Coffee Development Project (ICDP), aimed at improving yields and expanding cultivation.

A notable success is seen in the Araku Valley, where nearly 150,000 tribal families, supported by the Coffee Board and the Integrated Tribal Development Agency (ITDA), have increased coffee production by 20%. These initiatives, along with export incentives and logistical support, are essential in enhancing India’s coffee industry and establishing it as a key player in the global market.