Indian coffee exports double in value even as production remains flat

Interestingly, coffee production in India grew only marginally during the decade—from 344,500 tonnes in fiscal year 2015 (FY15) to a projected 352,000 tonnes in FY25—pointing to massive potential.

“Despite the limited growth in volume, India has been able to extract greater value from its coffee through improved market access and a stronger global presence," a senior government official said.

To be sure, exports were uneven over the decade.

From $0.81 billion in FY15, exports dipped slightly to $0.78 billion in FY16 before rising to $0.84 billion in FY17 and $0.97 billion in FY18. The value of exports then declined to $0.82 billion in FY19, $0.74 billion in FY20 and $0.72 billion in FY21.

A turnaround began in FY22, when exports crossed the $1 billion mark for the first time, reaching $1.02 billion, followed by $1.15 billion in FY23 and $1.29 billion in FY24, and surging to $1.81 billion in FY25.

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The key markets for Indian coffee—accounting for more than half the exports—are Italy, with a share of 18.09% of the total exports, followed by Germany (11.01%), Belgium (7.47%), Russia (5.28%), the UAE (5.09%), the US (4.54%) and Libya (3.87%), among others.

According to a senior executive at a leading Bengaluru-based coffee exporter, who requested anonymity, the volume of coffee available for exports is gradually shrinking as domestic consumption continues to grow.

“We have our own challenges. Production this fiscal has declined by around 12%, but we expect a better crop in the next fiscal year, which should improve export volumes. The volume is less and turnover is more mainly because of the high value of coffee," the exporter said.

The exporter said the government, instead of focusing on expensive international promotional activities, should use the money to support support coffee farmers directly, arguing that the trade already knows how to market Indian coffee.

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A coffee trader in Kerala said he has had to shut shop after suffering significant losses due to a sharp surge in coffee procurement prices. “Prices have increased nearly 100 times, and because of that we are not able to protect our margins. Demand from foreign destinations remains strong, but we simply cannot keep up at these price levels," said Salu Cholayil Kuriakose of EMIL Traders Pvt. Ltd.

The main coffee-producing states in India are Karnataka, Kerala and Tamil Nadu. Karnataka stands out with over 70% of India’s total coffee production. Other states, including Andhra Pradesh, Odisha and some north-eastern states, also cultivate coffee.

Meanwhile, to meet the growing appetite for Indian coffee—both at home and abroad—the government is stepping up production efforts, which include extending coffee cultivation in Odisha to the districts of Rayagada, Keonjhar and Mayurbhanj, benefiting over 50,000 tribal families.

“The programme involves identifying suitable land, procuring at least 200,000 coffee plants, and training farmers. It will be implemented by the Directorate of Soil Conservation and Watershed Development in partnership with the Coffee Board of India," a commerce ministry official said.

To support this target, the government increased the Coffee Board’s allocation to ₹280 crore in the 2025-26 budget. Additionally, new national certifications, set to launch by June, aim to highlight Indian coffee’s unique origins and enhance its global market standing.

“One major factor driving India’s coffee export boom is the global surge in robusta prices. India primarily produces robusta, which makes up over 70% of its coffee output. In 2024 alone, prices jumped over 60% due to weather-related disruptions in Brazil and Vietnam, pushing global buyers to turn to India," said Ajay Srivastava, co-founder of the Global Trade Research Initiative, a think tank.

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“The rising global demand for instant coffee—where robusta’s strong flavor and cost efficiency are ideal—has also played a key role. Countries like Russia and Turkey have significantly increased their imports from India," said Srivastava.

Srivastava further pointed out that Indian coffee’s shade-grown nature is gaining attention as the European Union prepares to enforce its Deforestation Regulation in December. “Indian coffee, grown without clearing forests, is well-positioned to meet these new sustainability standards. European buyers are proactively sourcing from India to ensure compliance," he said.