India is experiencing an increase in coffee exports. According to a PIB press release, the amount of coffee exported increased twelvefold between 1960-61 and 2020-21.
The value of Indian coffee exports increased by more than 760 times between 1960-61 and 2020-21. In 2021-22, according to a PIB press release, coffee exports surpassed $1 billion for the first time. According to the World Economic Forum (WEF), India was the seventh largest coffee producer in the world in 2020.
In April, Piyush Goyal, the minister of commerce, stated that coffee growers and exporters had facilitated record coffee exports totaling over a billion dollars. On Koo, Goyal authored: “The world is awakening to Indian coffee. In 2021-22, exports will increase by 42% over the previous year. Our coffee farmers and exporters have facilitated record-breaking coffee exports totaling over a billion dollars.” This development occurred after the export of Indian coffee decreased by 3% annually from 2011-12 to 2020-21.
IBEF or the Indian Brand Equity Foundation reported in its data that coffee exports in FY22 totaled $719.96 million. In 2020, India will be among the top 10 coffee-producing nations, producing approximately 3% of the world’s supply.
The high quality of Indian coffee has earned it a reputation as one of the world’s finest. It commands a premium on global markets as well. India produces both Arabica and Robusta varieties of coffee. Arabica coffee has a higher market value than Robusta due to its delicate aroma. Due to its robust flavor, Robusta coffee is utilized primarily for blending. Robusta is the most produced coffee, accounting for 72 percent of the total output.
IBEF reports that the industry directly employs more than 20 lakh people in India. Since coffee is primarily an export commodity in India, domestic demand and consumption have little effect on coffee prices.
Coffee is produced extensively in southern India. Karnataka is the largest producer, accounting for approximately 70% of India’s total coffee output. Kerala is the second-largest producer of coffee, but it is a distant second, accounting for only about 23% of the total output. Tamil Nadu is the third-largest producer, producing 6 percent of India’s coffee. Nearly half of Tamil Nadu’s coffee is produced in Nilgiri, an important Arabica-growing region. Orissa and the northeastern regions produce less than other regions.