India’s coffee exports have surged remarkably over the last 11 years, growing from $800 million in 2014–15 to $1.8 billion in 2024–25. This rise has established India as the fifth-largest coffee exporter globally, supported by increasing international demand, evolving domestic consumption patterns, and strategic development efforts.
Export Markets and Global Position
India is now ranked as the 5th largest exporter and 7th largest producer of coffee in the world. Over two-thirds of the 3.5 lakh tonnes of coffee produced annually in India are exported, with the primary destinations being:
- Italy
- Germany
- Russia
- Belgium
- United Arab Emirates (UAE)
- United States
Further, this steady export growth is due to global demand for Indian coffee varieties, particularly unroasted Arabica and Robusta beans.
Coffee Prices Surge Amid Global Supply Issues
A recent price rally in global coffee markets has also contributed to the rising value of exports. Leading coffee-producing countries like Brazil and Vietnam have reported lower yields due to adverse weather conditions, tightening global supply, and pushing prices to record highs. India, with its stable output and high-quality beans, has been able to capitalize on this global shortage.
Growth in Value-Added Coffee Products
While India primarily exports green (unroasted) coffee beans, there is rising global interest in value-added products such as roasted and instant coffee. This shift is opening up new export opportunities and encouraging domestic producers to diversify their offerings for better margins.
Coffee Production and Eco-Friendly Farming Regions
India’s coffee is predominantly grown in the biodiverse regions of the Western and Eastern Ghats. Karnataka remains the leading coffee-producing state, contributing over 248,000 metric tonnes in 2022–23, followed by Kerala and Tamil Nadu. These shaded plantations not only yield high-quality beans but also play a crucial role in conserving forest ecosystems and promoting sustainable agriculture.
Rising Coffee Consumption Within India
India is also experiencing a shift in consumption trends. Traditionally, a tea-dominated nation, India’s coffee culture is growing rapidly, especially among younger demographics. Rising incomes, urban café culture, and lifestyle changes have led to an increase in domestic consumption, from 84,000 tonnes in 2012 to 91,000 tonnes in 2023.
This internal demand, combined with export momentum, is pushing the coffee sector toward sustained growth.
Government Support and Development Initiatives
To support the expanding coffee sector, the Coffee Board of India has introduced several initiatives under the Integrated Coffee Development Project (ICDP). These include:
- Enhancing productivity through improved agricultural practices
- Promoting cultivation in non-traditional and tribal areas
- Supporting research and sustainability-focused farming
These initiatives aim to boost output while maintaining ecological balance and improving farmer incomes.
Conclusion
India’s coffee industry is undergoing a transformation. With export values more than doubling over the past decade and domestic consumption steadily climbing, the country is well-positioned to strengthen its global presence in the coffee trade. Meanwhile, just as global demand and pricing trends influence India’s coffee exports, similar dynamics are also shaping Indian rice prices in both domestic and international markets.
Continued support through policy, innovation in value-added products, and sustainable farming will be key drivers of future growth across both the coffee and rice sectors.
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