India Became 7th Largest Coffee Producer Globally

India Became 7th Largest Coffee Producer Globally

India has achieved a remarkable milestone by becoming the seventh-largest coffee producer globally. In the financial year 2023-24, the country’s coffee exports surged to an impressive $1.29 billion, nearly doubling the $719 million recorded in 2020-21.

This growth is attributed to the rising global demand for India’s unique coffee flavors and a burgeoning domestic market, driven by the increasing popularity of café culture and higher disposable incomes.

Notably, in January 2025 alone, India exported over 9,300 tonnes of coffee, with Italy, Belgium, and Russia as the primary importers.

Leading Coffee-Producing Regions in India

Karnataka

Leading with over 70% of the total coffee output, Karnataka’s Chikmagalur and Coorg districts are renowned for their high-quality Arabica beans.

Kerala

Contributing approximately 20% of the production, Kerala’s Wayanad region produces both Arabica and Robusta varieties.

Tamil Nadu

Known for its Nilgiri hills, Tamil Nadu primarily produces Arabica coffee.

Andhra Pradesh

Producing around 7,425 metric tonnes, this state grows both Arabica and Robusta varieties.

Odisha

Emerging as a significant coffee producer, with regions like Koraput and Rayagada making notable contributions.

The Influence of Café Culture on Coffee Consumption

The rise of café culture in India has significantly transformed coffee consumption. Once a traditional beverage, coffee has evolved into a lifestyle choice, particularly among younger generations.

The proliferation of domestic and international coffee chains has turned cafés into popular social hubs.

Brands such as Third Wave and Blue Tokai have played a important role in popularizing specialty coffees, driving a preference for high-quality brews.

Urbanization, coupled with rising disposable incomes, has further fueled this trend, making coffee a staple in daily life. This shift has led to an annual growth rate of 15-20% in the coffee industry.

Global Context

While India has climbed to the seventh spot globally, Brazil remains the world’s largest coffee producer.

With an annual production of approximately 3.0 million metric tonnes as of 2025, Brazil accounts for around 40% of the global coffee supply. This production contributes significantly to Brazil’s export revenues and supports millions of jobs in its coffee sector.

Economic Benefits of India’s Coffee Boom

India’s coffee boom offers several economic advantages:

The coffee industry provides employment to around 2 million people, particularly in rural areas of coffee-growing states like Karnataka and Kerala.

Rising coffee exports have enhanced trade revenues. In the 2022-23 financial year, India’s domestic coffee production reached 352,000 metric tonnes, with a significant portion allocated for international markets.

Initiatives like the “One District One Product” program promote specialty coffee, enabling farmers to secure better prices and improve their socio-economic conditions.

The expansion of cafés and specialty coffee shops boosts local economies by attracting consumers and fostering entrepreneurship.

Impact on Small-Scale Farmers

The coffee boom in India has presented both opportunities and challenges for small-scale farmers, who make up 98% of coffee growers.

The increasing demand for specialty coffee has allowed some farmers to fetch better prices, enhancing their income potential. However, these benefits are unevenly distributed due to varying access to markets and resources.

Small-scale farmers face rising production costs and the adverse effects of climate change, including erratic weather patterns that reduce yields. These factors have led to significant crop losses, making farming less financially viable.

Bar Talks

Many smallholders lack access to financial resources, advanced farming techniques, and government subsidies, which hampers their ability to improve productivity and compete in the market.

India’s emergence as the seventh-largest coffee producer globally is a testament to the growing significance of the coffee industry in the country’s economy. With Karnataka leading production and café culture driving domestic consumption, India is well-positioned to strengthen its foothold in the global coffee market.

However, addressing the challenges faced by small-scale farmers is essential to ensure that the benefits of this coffee boom are inclusive and sustainable.

As India’s coffee sector continues to build, it remains a vital contributor to economic growth, rural employment, and global trade.