India’s Coffee Exports

- 28 Jun 2025
In News:
India has emerged as a significant player in the global coffee trade, with its exports witnessing a sharp rise of 125% in the past 11 years, increasing from $800 million in 2014–15 to $1.8 billion in 2023–24, and continuing the momentum with over 25% growth in FY2025–26. This export surge highlights India's expanding footprint in the global premium coffee market, driven by a blend of policy support, sustainable cultivation practices, and global demand for specialty coffee.
Key Drivers of Export Growth
The Coffee Board of India, under the Ministry of Commerce, has played a pivotal role in this transformation through:
- Digitalisation of export permits, RCMC, and certificates of origin.
- Export incentives like freight and transit assistance—?3/kg for value-added exports and ?2/kg for green coffee to distant markets (e.g., US, Canada, Japan, Nordic countries).
- Subsidy support of 40% (up to ?15 lakh) for processing units (roasting, grinding, packaging).
- Global market intelligence and regular industry engagement to remove bottlenecks.
- Promotion via GI tags and digital branding campaigns.
These efforts have enhanced India’s readiness to meet stringent import regulations (e.g., EU deforestation norms) while enabling access to new and emerging markets.
Production and Cultivation
India is the 7th largest producer of coffee globally, accounting for about 3.5% of world production and ranks 5th in global coffee exports with a 5% share. The country produces 3.5–4 lakh tonnes of coffee annually, with Karnataka (70%), Kerala, and Tamil Nadu being major contributors.
- Arabica varieties: Kents, S.795, Cauvery, Selection 9.
- Robusta: High-yielding selections suited to Indian climate.
Climatic Features:
- Grown under two-tier shade canopies with over 50 native tree species.
- Arabica thrives at 1000–1500m, Robusta at 500–1000m altitudes.
- Requires 1600–2500 mm rainfall and 15°C–25°C temperature.
India is unique as the only country that cultivates 100% shade-grown coffee, which promotes biodiversity, soil and water conservation, and ensures a sustainable income for 2 million people, including small and marginal farmers.
Specialty and GI-Tagged Coffee
India’s coffee is known for its mild acidity, full-bodied flavour, and fine aroma. Intercropping with spices like pepper, cardamom, and vanilla further enhances its appeal. The country also boasts five regional and two specialty coffees with Geographical Indication (GI) tags, strengthening brand value in global markets.
The historic legacy of Indian coffee dates back over 400 years to the planting of coffee beans by Baba Budan in Karnataka, making it one of the oldest coffee traditions in Asia.