In a significant boost to India’s coffee industry, the country has witnessed a remarkable increase in coffee exports during the first half of the current financial year, which runs from April to September. According to the Coffee Board, India has achieved exports worth ₹7,771.88 crore, reflecting an impressive 55% rise from ₹4,956 crore during the same period last year. This surge highlights the growing global demand for Indian coffee and marks a pivotal moment for the nation’s agricultural sector.
Export Growth: Statistics and Trends
For the financial year 2024-25, India has exported 2.2 lakh tonnes of coffee, a substantial increase from 1.91 lakh tonnes in the same period last year, indicating a 15% growth in volume. This increase can largely be attributed to heightened demand from international markets, particularly in light of anticipated European export regulations that have prompted preemptive purchases by buyers.
Rising Coffee Prices: A Boon for Farmers
The surge in coffee exports has been accompanied by a significant rise in international coffee prices. Currently, buyers are paying an average of ₹352 per kilogram for Indian coffee, up from ₹259 per kilogram the previous year. Despite this export success, domestic coffee consumption remains relatively low, with approximately 80% of India’s coffee production being exported.
Italy continues to be the largest market for Indian coffee, accounting for 20% of total exports. Meanwhile, Germany, Russia, the UAE, and Belgium collectively import 45% of Indian coffee, further emphasizing the importance of international markets for Indian producers.
Impact on Domestic Prices: Rising Costs for Consumers
The increased demand from foreign markets has led to rising prices for coffee in India. Currently, robusta coffee beans are priced around ₹233-235 per kilogram, while the price for coffee berries of this variety ranges from ₹385 to ₹400. Over the past six months, the cost of coffee beans has risen by ₹53, and coffee berries have seen an increase of ₹65. This price rise reflects the broader impact of global market trends on local agricultural economics.
Regional Contributions to Coffee Production
Kerala stands out as a significant contributor to India’s coffee production, accounting for 20% of the country’s total output. The majority of this production occurs in Wayanad, with additional contributions from districts such as Idukki, Palakkad, and Malappuram. As the state aims to enhance its coffee yield, plans are underway to further boost production capabilities.
Karnataka remains the dominant force in India’s coffee production, contributing a substantial 70% to the national yield, while Tamil Nadu ranks third with a 5.7% share. The total coffee production in India for the last fiscal year was approximately 3.6 lakh tonnes.
Varietal Distribution and Future Prospects
Both arabica and robusta coffee varieties are cultivated in Kerala, with robusta beans making up 70% of the total output. As the coffee harvest season approaches, there is an increasing emphasis on exploring new coffee sources to meet the rising global demand. This proactive approach aims to ensure that India can sustain its position in the competitive international coffee market.
