Coffee cultivation is a major livelihood source in India’s biodiversity-rich regions. Araku Valley involve nearly 150,000 tribal families, enabling them to achieve economic independence. With exports surging to $1.29 billion in FY 2023-24, almost doubling from $719.42 million in 2020-21, Indian coffee is brewing its way into global demand.
India’s tryst with coffee traces back to the 1600s when Baba Budan, a legendary saint, planted seven Mocha seeds in the hills of Karnataka. This humble act sowed the seeds for a flourishing coffee industry that today positions India as the seventh-largest coffee producer in the world. With exports surging to $1.29 billion in FY 2023-24, almost doubling from $719.42 million in 2020-21, Indian coffee is brewing its way into global demand.
Transforming India’s Coffee Landscape
India’s coffee industry has witnessed remarkable growth, underpinned by the robust flavors of Arabica and Robusta beans grown in the Western and Eastern Ghats. These ecologically rich regions not only produce premium coffee but also serve as biodiversity hotspots. Karnataka leads the production, contributing 248,020 MT in 2022-23, followed by Kerala and Tamil Nadu. The shaded plantations in these regions uphold environmental sustainability while boosting productivity.
Key initiatives by the Coffee Board of India, such as the Integrated Coffee Development Project (ICDP), have been pivotal. These efforts focus on enhancing yields, expanding cultivation to non-traditional regions, and ensuring sustainable farming practices. In Araku Valley, collaboration with the Integrated Tribal Development Agency (ITDA) has empowered 150,000 tribal families to increase production by 20%, showcasing coffee’s potential as a tool for socioeconomic transformation.
Global and Domestic Impact of Coffee Growth
Indian coffee’s distinct quality has attracted global buyers, with Italy, Belgium, and Russia being the top importers. While unroasted beans dominate exports, the rising demand for roasted and instant coffee has opened new avenues for value-added products, fueling an export boom. In January 2025 alone, India exported over 9,300 tonnes of coffee, reflecting its growing global footprint.
Domestically, a shift in consumption patterns driven by cafe culture, higher disposable incomes, and an increasing preference for coffee over tea has led to a steady rise in coffee consumption. From 84,000 tonnes in 2012 to 91,000 tonnes in 2023, this growth underscores coffee’s emergence as a staple beverage in both urban and rural India.
Modi Government’s Role in Transformation
The Modi government has been instrumental in transforming India’s agricultural and export landscape. With initiatives like Aatmanirbhar Bharat and strategic export incentives, the government has supported sectors like coffee to enhance global competitiveness. The focus on agricultural modernization, community empowerment, and robust logistics has bolstered exports while creating economic opportunities for marginalized communities.
The Araku Valley success story exemplifies this transformation. By integrating government support, cooperative financing, and tribal empowerment, the region has become a model of sustainable agriculture and inclusive development. Export incentives and infrastructure investments further ensure that India remains a formidable player in the global coffee market.
Why Coffee Trade is Important for India
India’s coffee trade holds immense significance for the nation, not just as an economic contributor but also as a driver of social empowerment, environmental sustainability, and global recognition. Here’s why coffee trade is crucial and how it benefits India:
1. Boosting Economic Growth
India is the seventh-largest coffee producer globally, with exports contributing significantly to the economy. In FY 2023-24, coffee exports reached $1.29 billion, almost doubling from $719.42 million in FY 2020-21.
- Foreign Exchange Earnings: The growing demand for Indian coffee in international markets helps bring valuable foreign exchange, strengthening India’s balance of payments.
- Job Creation: The coffee trade supports over 2 million workers, primarily in rural areas, providing steady employment in cultivation, processing, and export logistics.
2. Empowering Rural and Tribal Communities
Coffee cultivation is a major livelihood source in India’s biodiversity-rich regions like Karnataka, Kerala, and Tamil Nadu, as well as non-traditional areas like the Araku Valley.
- Empowering Marginalized Communities: Initiatives like those in Araku Valley involve nearly 150,000 tribal families, enabling them to achieve economic independence.
- Income Stability: With programs like the Integrated Coffee Development Project (ICDP), farmers benefit from higher yields and better market prices.
3. Strengthening India’s Agricultural Exports
Coffee has emerged as a key agricultural export, with markets in Europe, Russia, and the Middle East embracing the unique flavors of Indian Arabica and Robusta beans.
- Value-Added Exports: The shift from unroasted beans to value-added products like roasted and instant coffee opens up new revenue streams.
- Global Competitiveness: India’s quality coffee earns premium pricing, boosting its reputation as a reliable exporter.
4. Driving Domestic Consumption Trends
The rise of cafe culture and changing consumer preferences have fueled domestic coffee consumption, which increased from 84,000 tonnes in 2012 to 91,000 tonnes in 2023.
- Market Expansion: Growing domestic demand creates additional income streams for producers.
- Industry Growth: Coffee chains and micro-roasters are thriving, fostering entrepreneurship and innovation in the beverage industry.
5. Promoting Environmental Sustainability
India’s coffee plantations are shaded by forests, preserving biodiversity and promoting sustainable farming practices.
- Ecological Benefits: Coffee farms act as carbon sinks and help protect soil health and water resources.
- Sustainable Development Goals (SDGs): The industry aligns with global sustainability goals, enhancing India’s international standing.
6. Enhancing India’s Global Soft Power
Coffee is not just a commodity; it is a cultural symbol. India’s coffee, particularly from regions like Chikmagalur and Araku, has gained international acclaim for its quality.
- Brand India: Promoting Indian coffee globally enhances the country’s image as a producer of premium agricultural products.
- Cultural Diplomacy: Coffee festivals and collaborations with international brands help build goodwill for India in global markets.
7. Driving Innovation and Technology Adoption
The coffee trade encourages the adoption of advanced technologies in agriculture and supply chain management.
- Precision Farming: Modern techniques improve yields and reduce waste.
- Blockchain and Traceability: Ensuring transparency in the supply chain increases consumer trust in Indian coffee.
India’s coffee story is a testament to the synergy between tradition and transformation. With global demand on the rise, supported by robust government policies and innovative farming practices, India is poised to brew its way into even greater success. By enhancing exports and empowering communities, the coffee industry exemplifies how agriculture can contribute to the vision of a self-reliant and globally competitive India.
