Mumbai, Jan 2: India’s coffee exports have surged during April-November of the current financial year, shooting past a record $1 billion during the 8-month period, according to figures compiled by the Centre for Monitoring Indian Economy (CMIE).The jump in the value of exports is due to the sharp increase in prices of Robusta coffee and stocking ahead of the European Union’s new deforestation regulation that is expected to increase the cost of coffee as well as several other agricultural exports to the EU.
India’s coffee exports rose by 12.22 per cent to $1.28 billion for the full year in 2023-24 on higher demand for Robusta coffee in the global markets, according to the Commerce Ministry data. The country exported coffee worth $1.14 billion in 2022-23.
Italy, Russia, the UAE, Germany, and Turkey are the major markets for India’s coffee exports.
India became the world’s eighth-largest coffee grower during 2022-2023. Indian coffee is one of the best coffees in the world owing to its high quality and commands a premium in the international markets. India produces two types of coffee: Arabica and Robusta.
Arabica has a higher market value than Robusta coffee due to its mild aromatic flavour. Robusta coffee is used in making various blends due to its strong flavour. Robusta is a majorly manufactured coffee with a share of 72 per cent of the total production of Indian coffee. India is considered the fifth largest producer of Robusta coffee globally. The industry provides direct employment to more than 2 million people in India. Since coffee is an export commodity for India, domestic demand and consumption do not drastically impact the prices of coffee.
Coffee is produced mainly in India’s southern states with Karnataka being the largest producer accounting for as much as 71 per cent of the total production of the crop. Kerala is the second-largest producer of coffee but accounts only for about 20 per cent of the total production. Tamil Nadu is the third-largest producer with 5 per cent of India’s total coffee production. Half of Tamil Nadu’s coffee is made in the Nilgiri district, a major Arabica growing region. Orissa and the north-eastern areas have a smaller proportion of production.
India’s combined Arabica and Robusta harvest was estimated at around 3.74 lakh tonnes for the 2023-24 crop year. While Arabica’s production is a little over 1 lakh tonnes, Robusta’s output is around 2.6 lakh tonnes.