India's Coffee Market Hits New Heights as Exports Increase

With a rising demand for Indian coffee at the international level, India has reported coffee exports of Rs 7,771.88 crore during the first half of FY25 with a drastic increase of 55pc to Rs 4,956 crore in the corresponding period of FY24.

This is strictly boom situation in the international demand for Indian coffee and one of the key milestones that farm economy of this country can easily take away and flaunt.

Latest data available from Coffee Board of India indicate that the country exported 2.2 lakh tonnes of coffee during April-September period, up from 1.91 lakh tonnes in the same period last year, or a volume growth rate of 15 percent.

International coffee prices are skyrocketing with high prospects amid expectations that the European countries would enforce rigid control on exports. Compared to Rs 259 per kg some time earlier, the average price of Indian coffee is about Rs 352 per kg.

Among all the importing nations of Indian coffee, Italy tops the list with a share of 20 percent of the total. Together, Germany, Russia, the UAE and Belgium import 45 percent of the Indian coffee.

According to the estimates put before by the Coffee Board, India has produced approximately 3.6 lakh metric tonnes of coffee in the crop year 2023-24.

India's coffee exports had crossed a record $1.016 billion in the year 2021-22. It came out during the year in which the exports have advanced by 38 percent from that of the preceding crop year 2020-21. In 2021-22, India continued to remain the fifth largest exporter of coffee in the world and held a share of about 6 percent of global coffee exports.

Karnataka constitutes approximately 70 percent of the production of coffee in India. Then, comes the state of Kerala accounting for a share of 20 per cent in the production of coffee in India. Tamil Nadu comes third with a 5.7 per cent share. The country's coffee industry has also witnessed export of coffee abroad as an important influence.