India’s coffee exports have hit a significant milestone, surpassing the $1 billion mark during the April-November period of the financial year 2023-24. According to data from the Centre for Monitoring Indian Economy (CMIE), the surge in export value is primarily driven by rising global prices of Robusta coffee and pre-emptive stocking ahead of the European Union’s new deforestation regulation.
Robust Growth in Export Value
India’s coffee exports witnessed a 12.22% increase, reaching $1.28 billion for the fiscal year 2023-24, compared to $1.14 billion in the previous year, as per data from the Commerce Ministry. The higher demand for Robusta coffee in global markets played a crucial role in this growth.
Key Export Markets
Italy, Russia, the UAE, Germany, and Turkey remain the top destinations for India’s coffee exports. These markets account for a significant share of the overall export value, reflecting strong global demand for Indian coffee varieties.
India’s Position in Global Coffee Production
India ranks as the world’s eighth-largest coffee grower and the fifth-largest producer of Robusta coffee. Known for its premium quality, Indian coffee commands higher prices in international markets. The country produces two primary types of coffee:
- Arabica: Valued for its mild and aromatic flavor, commanding a premium price.
- Robusta: Known for its strong flavor, widely used in coffee blends and comprising 72% of India’s total coffee production.
Regional Production Overview
Coffee cultivation in India is concentrated in the southern states:
- Karnataka: Contributes 71% of India’s total coffee production.
- Kerala: Accounts for 20% of the national output.
- Tamil Nadu: Produces 5% of India’s coffee, with the Nilgiri district being a major Arabica-growing region.
Additionally, smaller contributions come from Odisha and the northeastern states.
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Production Estimates for 2023-24
The combined Arabica and Robusta coffee harvest for the 2023-24 crop year is estimated at 3.74 lakh tonnes. Arabica accounts for a little over 1 lakh tonnes, while Robusta dominates with around 2.6 lakh tonnes.
Employment and Economic Impact
The Indian coffee industry supports over 2 million people through direct employment. As coffee is primarily an export-oriented commodity, domestic consumption has minimal influence on coffee prices in India.
With rising global demand and favorable export trends, India’s coffee sector is poised for continued growth. Strategic focus on quality, sustainability, and market diversification will be essential in maintaining this momentum in the coming years.
This news was reported by IANS.
