Commerce Secretary: Need to increase coffee cultivation, grow Indian brands to prepare for future demand

Commerce Secretary Rajesh Agrawal has stressed the need to increase coffee cultivation across India in view of rising consumption among the younger generation and projected demand growth in the coming years. Addressing an event organised on the occasion of International Coffee Day, shortly after taking charge as Commerce Secretary, Agrawal highlighted the need to work on creating more Indian coffee brands to realise their true value, instead of piggybacking on existing international brands.

He called

for more value addition to increase exports, as well as the production of more coffee combinations through inter-cropping with spices.

Stating that India will be one of the biggest coffee consumers in the future, he said coffee drinking is increasingly being seen as a social or work-related experience. Highlighting India's fast-rising middle class, he pointed out that India may import some coffees in the future to create the "right blends" which could become popular. While describing Indian coffee cultivation as sustainable, he stressed the need to address challenges in pest and disease management, as coffee is grown in forests.

India is looking to increase overall coffee production by expanding cultivation beyond the traditional growing areas of Karnataka, Kerala, and Tamil Nadu, which currently contribute over 96% of total domestic production. The government is focusing on increasing cultivation and replantation in Andhra Pradesh, Odisha, and the northeastern states, while researchers from the Coffee Board of India are identifying new suitable areas to ensure quality production.

Having incubated 63 startups related to coffee exports, the Coffee Board has developed the India Coffee App, a one-stop shop to access products, services, and stakeholder information in real time. India’s coffee exports have grown at a CAGR of 22.52% in the past five years.

India's coffee exports rose 40% YoY to $1.8 billion in FY 2024-25, and grew 25% YoY to $403.67 million during April–May 2025. Over the past 10 years, exports have tripled, from ₹4,973 crores in FY 2014-15 to ₹15,292 crores in FY 2024-25. India is the world's 7th largest producer of coffee (3.5% of global production) and the 5th largest exporter (5% of global exports).

India is also the 3rd largest coffee producer and exporter in Asia, exporting 70% of its production. Major export destinations include Germany, Italy, Russia, Türkiye, and the UAE.

According to the Coffee Board, India’s share in global exports has increased in value and volume due to a shift from green to more value-added and soluble coffee. While 94% of exports were green coffee a few decades ago, value-added coffee now comprises 38% of the export basket. India is the 2nd largest producer of instant coffee after Brazil.

India is globally known for sun-dried, handpicked coffee grown under a two-tier agroforestry system. The country is one of the few to produce both Arabica and Robusta varieties, with 13 Arabica and 3 Robusta varieties cultivated. Arabica coffee has lower caffeine and a sweet, smoother taste, while Robusta is typically more bitter.

In the past 10 years, the number of export markets has grown from 105 to 128, diversifying the export basket. The EU’s share in total exports decreased from 54% to 46%, while high-value markets like South Korea and Japan have grown. West Asia is emerging as a popular destination, Monsoon Malabar coffee is gaining traction in Scandinavia, and Indian Robustas are increasingly used for Espressos in Europe.