World Wakes To Rich Smell Of Indian Coffee

India’s coffee exports during April-Nov last year grew 29% over the same period in 2023, crossing the $1 billion mark for the first time.

History of Coffee in India

  • Coffee was introduced to India in the 17th century by Baba Budan , a Sufi saint, who is believed to have smuggled seven coffee beans from Yemen and planted them in the Chandragiri Hills (now called Baba Budan Giri ) in Karnataka.
  • During British rule, coffee plantations expanded commercially, particularly in South India, as the British established large estates.
  • Post-independence, the Coffee Board of India was established in 1942 to regulate and promote coffee production.

Major Coffee Exporting Countries in the World

Major Coffee Producing States in India

India primarily grows two varieties of coffee: Arabica (high-quality, aromatic, grown at higher altitudes) and Robusta (stronger, more caffeine, grown at lower altitudes) .

  • Karnataka (Chikmagalur, Kodagu, Hassan) is the largest producer, contributing about 70% of India's coffee.
  • Kerala (Wayanad, Idukki, Palakkad) is the second-largest producer, known for Robusta coffee .
  • Tamil Nadu (Nilgiris, Yercaud, Kodaikanal) specializes in Arabica coffee .
  • Andhra Pradesh & Odisha are emerging as new coffee-growing regions , particularly in tribal areas of Araku Valley.

Challenges to Coffee production

  • Indian coffee production faces challenges like climate change , causing erratic rainfall and pest outbreaks (White Stem Borer, Coffee Leaf Rust).
  • Price volatility due to global market fluctuations affects farmers' income.
  • Small landholdings and low mechanization reduce productivity.
  • Labor shortages and rising wages increase costs.
  • Lack of value addition limits profitability, as most coffee is exported raw.
  • Competition from Brazil and Vietnam further pressures India's coffee sector, necessitating better branding and sustainable practices.

India’s Export Promotion Measures

  • India Coffee Branding : Promotion of GI-tagged coffee varieties like
    • Coorg Arabica Coffee (Karnataka)
    • Bababudangiri Arabica Coffee (Karnataka)
    • Araku Valley Coffee (Andhra Pradesh & Odisha)
  • Export Incentives : The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme provides refunds on embedded taxes.
  • Specialty Coffee Promotion : Encouraging organic, single-origin, and shade-grown coffees to fetch premium prices internationally.

India’s Major Coffee Export Markets (in %)