Indian coffee exports surge amid rising global demand

Kochi: In a major development to the country’s coffee sector, India has recorded a substantial increase in coffee exports during the first half of the current financial year (April-September), achieving a value of Rs 7,771.88 crore. This marks a remarkable 55 percent rise from Rs 4,956 crore during the same period last year, according to figures from the Coffee Board.

For the 2024-25 financial year, India has exported 2.2 lakh tonnes of coffee, up from 1.91 lakh tonnes in the same period last year, showcasing a 15 percent increase. The surge in exports is primarily attributed to heightened demand from international markets, alongside preemptive purchases in anticipation of European export regulations.

Coffee prices in the international market have also seen a considerable rise, with buyers paying an average of Rs 352 per kilogram for Indian coffee, compared to Rs 259 in the previous year. However, domestic consumption of coffee is relatively low, with approximately 80 percent of production being exported. Italy remains the largest market, accounting for 20 percent of total exports, while countries such as Germany, Russia, the UAE, and Belgium collectively import 45 percent of Indian coffee.

The increased demand in foreign markets has led to rising prices domestically, with robusta coffee beans currently priced at around Rs 233-235 per kilogram. The price for coffee berries of this variety ranges from Rs 385 to Rs 400. Over the last six months, the price of coffee beans has risen by Rs 53, while the cost of coffee berries has increased by Rs 65.

Kerala contributes 20 percent of India’s coffee production, positioning it as the second-largest coffee-producing state in the country. The bulk of the production occurs in Wayanad, with additional output from Idukki, Palakkad, and Malappuram districts. Plans are underway to further boost production in the state.

Karnataka leads as the top producer, contributing 70 percent of the country’s coffee yield, while Tamil Nadu ranks third with a 5.7 percent share. The total coffee production in India last fiscal year was approximately 3.6 lakh tonnes.

Both arabica and robusta varieties are cultivated in Kerala, with robusta accounting for 70 percent of the total output. As the harvest season approaches, there has been an increase in efforts to explore new coffee sources to meet growing demand.