June 23, 2025
Europe remains the largest buyer, with strong demand also from Japan, Korea, and the Middle East
Government schemes offer freight incentives and machinery subsidies to promote value-added coffee
Coffee Board’s digital initiatives have eased export documentation and market access
Shade-grown coffee is helping India align with EU deforestation norms and promote biodiversity
India’s coffee exports have risen sharply over the past decade, recording a 125% increase to US$ 1.8 billion in 2023–24 from just over US$ 800 million in 2014–15, according to data released by the central government. In the previous fiscal year, 2022–23, the export value stood at US$ 1.14 billion. Europe continues to be the primary destination for Indian coffee, with key importers including Italy, Germany, Belgium, the Middle East, South Korea, and Japan.
The rise in exports is attributed to a slew of targeted initiatives by the Coffee Board of India. These include the introduction of online issuance of essential documents like the Registration-cum-Membership Certificate (RCMC), export permits, and certificates of origin, all with digital signatures. The Board also maintains consistent engagement with exporters to resolve operational challenges and provides global market insights and intelligence.
To enhance earnings from overseas sales, the government has rolled out freight assistance schemes. Exporters receive Rs 3 per kg for value-added coffee products and Rs 2 per kg for shipping premium green coffee to distant high-value markets such as the US, Canada, Japan, Australia, New Zealand, South Korea, and Scandinavian countries. Additionally, the Coffee Board supports individuals, self-help groups, and growers by funding 40% of the cost, up to Rs 15 lakh, for installing roasting, grinding, and packaging machinery.
These efforts are helping Indian coffee tap new international markets. Experts have noted that the measures have contributed significantly to market expansion. Coffee Board CEO and Secretary M Kurma Rao emphasised that Indian coffee is grown under a rich canopy of native and mixed shade trees, a system that supports biodiversity, preserves soil and water, enhances carbon capture, and sustains small and marginal farmers through crop diversification.
Veteran coffee growers added that India is among the few countries promoting shade-grown coffee. He highlighted its environmental benefits, particularly in aligning with the European Union’s deforestation regulations. Entrepreneurs are working closely with domestic producers and roasters to elevate Indian coffee’s reputation worldwide. Experts also observed that there is significant potential to increase exports of specialty coffee. SICC operates across the US, UK, and India, offering end-to-end logistics and warehousing for the coffee sector.
India is currently the world’s seventh-largest coffee producer, accounting for 3.5% of global output, and ranks fifth in exports with a 5% share. The country produces around 3.6 lakh tonnes of coffee annually, and the industry provides direct and indirect employment to approximately two million people, primarily in Karnataka, Kerala, and Tamil Nadu.
Source: Economic Times