India's overseas coffee shipments have recorded an astonishing 40% growth between April and February this financial year over the previous year, reaching more than $1.54 billion from $1.10 billion in the corresponding period last year, based on figures provided by the Ministry of Commerce.
Outward shipment of coffee went up by 22% to $178.68 million in February from $146.08 million in the corresponding month of last year.
In rupee terms, the value of exports increased by 43.37% to Rs 13,004.75 crore for the April-February period in 2024-25 over Rs 9,070 crore in the corresponding period of the last year.
India's major export markets for coffee are Italy, Germany, Russia, Belgium, the United Arab Emirates (UAE), and the United States.
Being the seventh-largest coffee producer and the fifth-largest exporter in the world, India is gaining from increasing coffee prices, which have hit record levels due to unfavourable weather in Brazil and Vietnam, the world's leading coffee producers. India ships out over two-thirds of its production of over 3.5 lakh tonnes annually.
India's coffee exports have almost doubled over the past few years, increasing from $719.42 million in FY 2020-21 to $1.29 billion in FY 2023-24, a reflection of the nation's increasing dominance of the international coffee market. Rising demand for India's rich and unique coffee flavor has fueled the expansion. Approximately 75% of Indian coffee production is Arabica and Robusta beans, which are mainly exported as green beans, though there is an increasing demand for value-added products like roasted and instant coffee.
India's coffee is mainly grown in the ecologically rich Western and Eastern Ghats, areas famous for their high biodiversity. Karnataka is the top producer of coffee in the country, accounting for 248,020 MT in 2022-23, followed by Kerala and Tamil Nadu. The shaded coffee plantations in these areas not only sustain the coffee sector but also help conserve these biodiverse regions.
While this is taking place, coffee consumption in the domestic market is increasing steadily within India due to the growth in cafe culture, increased disposable income, and changing consumer preference toward coffee from tea.
The coffee consumption within India has risen from 84,000 tonnes during 2012 to 91,000 tonnes during 2023, all this against this changing consumer culture, especially from urban and rural markets.
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