India's coffee industry has witnessed remarkable growth, with exports nearly doubling over the last 4 years. In the financial year 2023-2024, coffee exports reached an impressive $1.29 billion, up from $719.42 million in 2020-2021, positioning India as the seventh-largest coffee producer in the world, according to a statement released by the Commerce and Industry Ministry on January 20, 2025.
This surge in exports can be attributed to the rising global demand for India’s unique coffee flavors, with key buyers including Italy, Belgium, and Russia. In just the first half of January 2025, over 9,300 tonnes of coffee were exported, highlighting the increasing demand of Indian coffee on the global stage.
A significant portion of India’s coffee production consists of Arabica and Robusta beans, which account for about three-fourths of the total output. These beans are mostly exported as unroasted coffee, although demand for value-added products such as roasted and instant coffee is rapidly growing. Alongside international demand, coffee consumption in India has also seen a steady rise.
The growing café culture, increased disposable incomes, and a shift in preference from tea to coffee have fueled this trend. Domestic consumption rose from 84,000 tonnes in 2012 to 91,000 tonnes in 2023. Coffee, once seen as a niche beverage, is becoming an integral part of daily life for many Indians.
India’s coffee is primarily grown in the ecologically rich Western and Eastern Ghats, known for their biodiversity. Karnataka leads in production, contributing 248,020 tonnes in 2022-23, followed by Kerala and Tamil Nadu. These regions are home to shaded coffee plantations that not only support the industry but also play a crucial role in maintaining the ecological balance of these vital biodiversity hotspots.
In response to the growing demand, the Coffee Board of India has introduced various initiatives aimed at boosting production. The Integrated Coffee Development Project (ICDP) focuses on enhancing yields, expanding cultivation into non-traditional regions, and ensuring the sustainability of coffee farming. These efforts are part of a broader strategy to strengthen the industry, increase productivity, and improve India’s competitiveness on the global market.
One standout success of these initiatives can be seen in Araku Valley, where nearly 150,000 tribal families, in collaboration with the Coffee Board and the Integrated Tribal Development Agency (ITDA), have increased coffee production by 20%. This growth has been supported by loans from the Girijan Co-Operative Corporation (GCC), underscoring the role of coffee farming in empowering communities and contributing to the vision of Aatmanirbhar Bharat.
It is interesting to note that India’s journey with coffee dates back centuries to the 1600s, when Baba Budan, a holy saint, introduced Mocha seeds to the hills of Karnataka. This humble act sparked the development of India into a global coffee producer.
Over time, the country’s coffee industry has evolved from a small-scale operation to one of international significance, with India now firmly established as one of the top coffee producers globally.
