India’s Coffee Exports Surge 125% in a Decade: Government Data

India’s coffee exports have recorded a significant growth of about 125% over the past 11 years, rising from $800 million in 2014–15 to $1.8 billion in 2024–25, according to recent government data. This growth is attributed to a series of focused export-promotion initiatives by the Coffee Board of India, including support for value-added products, digital infrastructure, and sustainable farming practices.

Why in News?

The sharp increase in India’s coffee exports over the past decade is noteworthy, particularly in the context of global demand, sustainability regulations like the EU’s deforestation law, and the growing popularity of specialty coffee. This makes the Coffee Board’s efforts in market expansion, sustainability, and value addition a timely development in the agri-export landscape.

Export Growth & Destinations

• Coffee exports grew from $800 million in 2014–15 to $1.8 billion in 2024–25.
• In 2023–24 alone, exports stood at $1.28 billion.
• Europe remains the top market, with Italy, Germany, Belgium as major importers.
• Other key destinations: Middle East, Japan, Korea.

Export Promotion Measures by Coffee Board

Digital Transformation

• Online issuance of RCMC, Export Permit, Certificate of Origin using digital signatures.

Support Mechanisms

• Regular meetings with exporters to resolve bottlenecks.
• Dissemination of market intelligence and global trade updates.

Financial Incentives

• ₹3/kg for value-added product exports.
• ₹2/kg for high-value green coffee exports to distant high-value markets (e.g., US, Canada, Japan, Australia).

Machinery Subsidy

• Up to 40% subsidy (max ₹15 lakh) for roasting, grinding, packaging machinery.

Sustainability and Shade-Grown Coffee

Coffee in India is cultivated under a canopy of shade trees, which,

• Promotes biodiversity.
• Aids carbon sequestration, soil & water conservation.
• Aligns with EU deforestation-free regulation.

Entrepreneurial Ecosystem & Private Players

• South India Coffee Company and Vidi’s Coffee are helping promote Indian specialty coffee internationally.
• Entrepreneurs see huge export potential in the specialty coffee niche.

Static Facts

• India ranks 7th globally in coffee production and 5th in exports.
• Annual production: ~3.6 lakh tonnes.
• Major producing states: Karnataka, Kerala, Tamil Nadu.
• 2 million people are directly/indirectly employed in the sector.