Coffee exports up 125 per cent to USD 1.8 billion in last 11 years: Central government data

India’s coffee exports rose 125 per cent in 11 years, reaching $1.8 billion, on account of a series of measures taken by the Coffee Board of India. Measures include export support, subsidies, and sustainable practices, boosting India's global presence and creating opportunities in specialty coffee and value-added products

Bengaluru: The country’s coffee exports have jumped about 125 per cent to USD 1.8 billion in the last 11 years on account of a series of measures taken by the Coffee Board of India, according to the Central government data.

The exports stood at over USD 800 million in 2014-15. It was USD 1.28 billion in 2023-24 and USD 1.14 billion in 2022-23, the data showed. Europe remains the top destination for the country’s coffee exports. The major countries that import the commodity from India include Italy, Germany, Belgium, Middle East nations, Korea, and Japan.

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The major initiatives taken by the Coffee Board of India to push the exports include online issuance with a digital signature of registration-cum-membership certificate (RCMC), export permit, certificate of origin, regular interaction with the exporters to discuss bottlenecks and addressing those issues, and providing regular global market information and market intelligence.

The other export promotion steps included transit/freight assistance to maximise export earnings by enhancing the market share of value-added coffee. The government provides Rs 3 per kg for export of value-added products; Rs 2 for shipments of high value green coffees to far-off high value markets such as the US, Canada, Japan, Australia, New Zealand, South Korea, and Finland, Norway, and Denmark.

To support the business community for value addition, the board supports individuals, self-help groups, and growers. It provides 40 per cent cost of machinery with a ceiling of Rs 15 lakh for installation of roasting, grinding and packaging machinery.

“These measures are helping us to reach newer markets,” Vidi’s Coffee Founder Divya Shree G S said. Further, according to Coffee Board CEO and Secretary M Kurma Rao, in India, coffee is cultivated under a diverse canopy of native and mixed shade trees and this system supports biodiversity, ensures soil and water conservation, enhances carbon sequestration and sustains livelihoods for small and marginal farmers by offering opportunities for crop diversification.

Veteran Coffee grower from Coorg, Bose Mandana, said India is one of the few countries which is promoting shade grown coffee. “This helps in protecting forests. It is a sustainable way to grow coffee and it will help India deal with EU’s deforestation regulation,” Mandana said.

Talking about the measures taken by the Board to help entrepreneurs, South India Coffee Company (SICC) founder husband and wife duo Akshay Dashrath and Komal Sable said that they are partnering with Indian coffee producers and roasters to put Indian coffee on the world map.

“Huge potential is there to increase exports of specialty coffee from India,” Komal said. SICC operates in the US, the UK, and India, with end-to-end logistics and warehousing capabilities for the sector.

The main coffee-producing states are Karnataka, Kerala, and Tamil Nadu. India is the seventh largest producer of the world with 3.5 per cent share and fifth largest exporter with 5 per cent share. India produces about 3.6 lakh tonnes of coffee per year. About two million people are employed in the sector directly and indirectly.