India’s coffee exports have hit a record high, surpassing $1 billion during the April-November period of the current financial year, according to data from the Centre for Monitoring Indian Economy (CMIE). This surge in export value is attributed to a significant increase in Robusta coffee prices and strategic stocking ahead of the European Union’s new deforestation regulation, which is expected to drive up the cost of coffee and other agricultural exports to the EU.
For the full year 2023-24, India’s coffee exports rose by 12.22%, reaching $1.28 billion, driven by strong global demand for Robusta coffee. In comparison, India exported coffee worth $1.14 billion in 2022-23, as per Commerce Ministry data.
The major markets for India’s coffee exports include Italy, Russia, the UAE, Germany, and Turkey.
India has become the world’s eighth-largest coffee producer as of 2022-2023, with its coffee known for its high quality and commanding a premium in international markets. The country produces two main types of coffee: Arabica and Robusta.
Arabica coffee, known for its mild and aromatic flavor, typically has a higher market value than Robusta, which is prized for its strong flavor and is widely used in blends. Robusta accounts for 72% of India’s total coffee production, making the country the fifth-largest global producer of Robusta. India’s coffee industry employs over 2 million people directly. Since coffee is largely an export commodity, domestic demand has less impact on its prices.
Coffee production in India is concentrated in the southern states, with Karnataka being the largest producer, accounting for 71% of the nation’s total output. Kerala is the second-largest producer, contributing about 20%, while Tamil Nadu ranks third, producing 5% of India’s coffee. Tamil Nadu’s Nilgiri district is a key area for Arabica cultivation. Smaller quantities are also produced in Orissa and northeastern India.
For the 2023-24 crop year, India’s combined Arabica and Robusta coffee production was estimated at around 374,000 tonnes. Arabica production is just over 100,000 tonnes, while Robusta yields about 260,000 tonnes.
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