Indian Coffee Brews Global Demand, Fueling Surge in Exports

GG News Bureau
New Delhi, 20th Jan. India’s coffee journey traces back to the 1600s, when Baba Budan, a revered saint, introduced Mocha seeds to Karnataka’s hills. This historic act catalyzed the rise of India as a key coffee producer. Today, India stands as the seventh-largest coffee producer globally, with exports reaching $1.29 billion in FY 2023-24, a significant increase from $719.42 million in 2020-21.

The surge in India’s coffee exports is fueled by the growing global demand for its rich, unique flavors. In just the first half of January 2025, India exported over 9,300 tonnes of coffee, with key buyers including Italy, Belgium, and Russia. Approximately 75% of India’s coffee production comprises Arabica and Robusta beans, which are primarily exported as unroasted beans. However, there is a rising demand for value-added products, such as roasted and instant coffee, contributing to the export boom.

Domestic coffee consumption is also on the rise, especially in urban and rural areas, fueled by the increasing café culture, higher disposable incomes, and a growing preference for coffee over tea. India’s coffee consumption has grown from 84,000 tonnes in 2012 to 91,000 tonnes in 2023, marking a shift in drinking habits.

The Western and Eastern Ghats, known for their ecological richness, remain the heart of India’s coffee production. Karnataka leads with 248,020 MT in 2022-23, followed by Kerala and Tamil Nadu. These regions are home to shaded plantations that not only support the coffee industry but also maintain biodiversity and environmental balance.

To meet rising demand, the Coffee Board of India has implemented several initiatives to boost production. The Integrated Coffee Development Project (ICDP) aims to increase yields, expand cultivation, and ensure sustainability. A key success story is the Araku Valley project, where 150,000 tribal families have increased coffee production by 20%, backed by loans from the Girijan Co-Operative Corporation (GCC).

These efforts, including export incentives and logistical support, are boosting both domestic production and global competitiveness, solidifying India’s position as a major player in the global coffee market.

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