The Rise of Indian Coffee on the Global Stage

India’s coffee journey began in the 1600s when Sufi saint Baba Budan smuggled seven coffee seeds from Yemen’s Mocha port and planted them in the Baba Budan Giri hills of Karnataka. What began as a small cultivation evolved into a robust, sustainable industry, sustaining over two million livelihoods. Coffee is now grown across 4.91 lakh hectares, predominantly in the Western and Eastern Ghats, under a shade-grown, eco-friendly system. Today, India ranks 7th globally in production, contributing 3.5% of global output, with nearly 70% exported to 128 countries.

India’s Coffee Landscape: Key States and Varieties

India’s coffee cultivation is concentrated in Karnataka, Kerala, and Tamil Nadu, which produce nearly 96% of the total output. Karnataka leads the pack with over 2.8 lakh metric tonnes of coffee in 2025–26. The rest of the production comes from non-traditional areas like Andhra Pradesh, Odisha, and Northeast India, where coffee has become an engine for tribal livelihood and ecological conservation.

The country’s diverse topography gives rise to distinct coffee types,

• Arabica grows in the cooler highlands.
• Robusta thrives in warmer, humid zones and earns high global premiums.

Specialty and GI-Tagged Coffees: A Global Identity

India has earned Geographical Indication (GI) tags for five regional and two specialty coffees, which enhances market value. These include,

• Coorg, Chikmagalur & Bababudangiris Arabica Coffee
• Wayanad Robusta Coffee
• Araku Valley Arabica Coffee
• Specialty coffees like Monsooned Malabar Robusta, Mysore Nuggets Extra Bold, and Robusta Kaapi Royale

These coffees are appreciated globally for their aroma, low acidity, and complex flavour profiles, reinforcing India’s position in the specialty coffee segment.

The Coffee Board: Backbone of the Sector

Established under the Coffee Act of 1942, the Coffee Board of India supports research, quality improvement, and export promotion. It coordinates infrastructure development under the Integrated Coffee Development Project (ICDP), with focus areas like,

• Supporting small farmers
• Facilitating global exposure through fairs
• Promoting Indian brands overseas
• Offering freight subsidies under the Export Promotion Scheme

The Board’s research wing, CCRI, develops high-yield, pest-resistant varieties and improves cultivation practices, while the Promotion Department boosts global and domestic demand.

Coffee Exports: Rising Global Demand

India ranks fifth in global coffee exports, contributing around 5% of all exporting nations. In FY 2024–25, coffee exports hit a record USD 1.8 billion, with instant coffee products making up 38% of shipments. The major export destinations are,

• Italy (18.09%)
• Germany (11.01%)
• Belgium, Russia, UAE
• This export success improves farmer incomes and boosts India’s brand in the global coffee trade.

Key Trade Reforms & Agreements

GST Reform

The GST cut from 18% to 5% on coffee extracts and instant coffee has lowered prices by nearly 12%, boosting consumption and making value-added products more competitive.

India–UK CETA

This agreement provides duty-free access for Indian instant and roasted coffee to the UK market, allowing better competition with European suppliers.

India–EFTA TEPA

Effective from October 2025, this agreement removes import duties on Indian coffee in Switzerland, Norway, and Iceland, opening high-value markets for shade-grown and specialty varieties.

Koraput Coffee & TDCCOL: Tribal Empowerment

Koraput district in Odisha has emerged as a rising star with its high-quality Arabica coffee. Supported by TDCCOL, the state’s tribal cooperative,

• It ensures doorstep procurement and fair pricing.
• Launched the “Koraput Coffee” brand in 2019.
• Established eight cafés to promote tribal coffee culture.
• Won two Fine Cup Awards in 2024.

These efforts showcase how coffee can empower tribal farmers, reduce migration, and create local jobs.

The Road Ahead: India’s Coffee Future

India’s coffee market is poised to grow at a CAGR of 8.9% by 2028. The out-of-home segment may grow by 15–20%, reaching $2.6–3.2 billion. The Coffee Board aims to triple production to 9 lakh tonnes by 2047, signaling an ambitious, quality-driven future.

Static GK Points

• Coffee Board of India: Formed in 1942 under the Coffee Act VII.
• Baba Budan: Introduced coffee in India from Yemen in 1600s.
• GI-tagged Coffees: Coorg Arabica, Wayanad Robusta, Chikmagalur Arabica, Araku Valley Arabica, Bababudangiris Arabica.
• Specialty Coffees: Monsooned Malabar, Mysore Nuggets Extra Bold, Robusta Kaapi Royale.
• India’s Coffee Rank: 7th in production, 5th in exports globally.
• Top Producing State: Karnataka.