As per CMIE think tank, Indian coffee exports in 2024 experienced a 45% increase in dollar value, reaching over $1.68 billion.
Reason for increase in export
- Surge in Robusta coffee prices: By over 60% in 2024, reaching 45-year high due to increased global coffee consumption.
- It was driven by poor weather (e.g. droughts) which disrupted supply in key coffee producing countries like Brazil and Vietnam.
- European Union Deforestation Regulation (EUDR): Sharp growth is due to stocking ahead of EU’s new deforestation regulation that could raise cost of coffee and other agricultural exports to EU.
Status of Coffee Production
- India is eighth largest coffee producer globally in 2022-23.
- Brazil is world’s largest coffee producer, contributing about 40% of global production.
- Traditionally grown in rainforests of Western Ghats in South India mainly produced in Karnataka (highest), Kerala, Tamilnadu, Andhra Pradesh and Odisha.
- Arabica and Robusta Coffee are of major economic importance.
- Arabica is superior in quality to Robusta and trades at higher price than that of Robusta.
- India is fifth largest producer for robusta coffee which accounts for 72% of country's total coffee production.
