Indian Coffee Brews Global Demand with Surging Exports and Domestic Consumption

Team Finance Saathi

    21/Jan/2025

What's Covered Under the Article:

  1. India’s coffee exports reached Rs. 11,163.66 crore in FY24, driven by rising global demand for Arabica and Robusta beans.
  2. Domestic coffee consumption surged from 84,000 tonnes in 2012 to 91,000 tonnes in 2023, thanks to a growing cafe culture.
  3. The Coffee Board’s initiatives, including the ICDP, aim to improve yields and expand cultivation, fostering economic growth and sustainability.

India’s coffee journey dates back centuries, originating with Mocha seeds brought by the holy saint Baba Budan to the hills of Karnataka in the 1600s. This historical event laid the foundation for India’s rise as a major global coffee producer, setting the stage for the country’s significant contribution to the global coffee market.

Today, India stands as the seventh-largest coffee producer globally, with coffee exports reaching a remarkable Rs. 11,163.66 crore (US$ 1.29 billion) in FY24, nearly double the export value from 2020-21. India's coffee, particularly Arabica and Robusta beans, is highly sought after worldwide for its unique flavours, attracting key export markets such as Italy, Belgium, and Russia. The rising global demand for value-added coffee products, including roasted and instant coffee, has further propelled this boom.

Domestically, India has also witnessed a significant surge in coffee consumption. From 84,000 tonnes in 2012, domestic consumption has risen to 91,000 tonnes in 2023, driven by a burgeoning cafe culture and shifting consumer preferences. Coffee drinking habits are rapidly evolving across the nation, making India one of the most prominent coffee markets in the world.

India's coffee is predominantly grown in the ecologically rich regions of the Western and Eastern Ghats, with Karnataka leading production, followed by Kerala and Tamil Nadu. The Coffee Board of India has launched several initiatives to further boost the industry’s growth. One of the flagship programs, the Integrated Coffee Development Project (ICDP), focuses on improving yields, expanding cultivation, and ensuring sustainability in coffee farming.

These initiatives have yielded significant success, especially in regions like Araku Valley, where local communities have been empowered to grow and process coffee. The success story in Araku Valley is a testament to the potential of coffee farming to drive local economic growth while simultaneously contributing to India’s global competitiveness in the coffee market.

Looking forward, the coffee industry in India is poised for continued growth, with efforts focused on improving productivity, ensuring sustainability, and enhancing the quality of coffee produced. The government and industry stakeholders are working hand in hand to support farmers, improve infrastructure, and promote India’s coffee as a premium product in the global market.

India’s coffee sector continues to make significant strides, not only in terms of exports but also in contributing to the nation’s economic growth and socio-economic development through agricultural innovation and community empowerment.


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