Indian coffee is making waves from America to Europe. India has recorded substantial growth in coffee exports during the first half (April-September) of the current financial year, which is valued at Rs 7,771.88 crore. According to Coffee Board data, the country had exported coffee worth Rs 4,956 crore in the same period last year. This means there has been a 55 percent increase in exports compared to last year. For fiscal year 2024-25, India exported 2.2 lakh tonnes of coffee, up from 1.91 lakh tonnes in the same period last year. This means that an increase of 15 percent has been observed here as well. According to the report, the main cause of the increase in exports is considered to be the demand for coffee in the international market.
Coffee prices rise
On the other hand, coffee prices have also seen a significant increase in the international market, with buyers having to pay an average of Rs 352 per kg for Indian coffee, while last year this price was Rs 259. However, domestic coffee consumption is relatively low and 80 percent of total production is exported. Italy remains the largest market, accounting for 20 percent of total exports.
While countries like Germany, Russia, the United Arab Emirates and Belgium collectively import 45 percent of Indian coffee. Due to increasing demand in foreign markets, prices have increased domestically; the price of robusta coffee beans is currently around Rs 233-235 per kg. The price of this variety of coffee beans ranges between Rs 385 and Rs 400. In the last six months, the price of coffee beans has increased by Rs 53, while the price of coffee berries has increased by Rs 65.
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Karnataka and Kerala are at the forefront in terms of production.
Kerala contributes 20 percent of India’s coffee production, making it the second largest coffee producing state in the country. Most of the production takes place in Wayanad, with additional production coming from Idukki, Palakkad and Malappuram districts. A plan is in the works to further boost production in the state. Karnataka tops the list as the top producer, contributing 70 per cent of the country’s coffee production, while Tamil Nadu ranks third with a share of 5.7 per cent.
The total coffee production in India in the last financial year was about 3.6 lakh tonnes. Both Arabica and Robusta varieties are grown in Kerala; the proportion of Robusta in total production is 70 percent. As the harvest season approaches, efforts have increased to discover new sources of coffee to meet growing demand.
