Introduction
India remained the 7th largest coffee producer globally in Marketing Year (MY) 2025 (October–September), reinforcing its position as a key player in the international coffee market. Over MY 2016–2025, the country recorded a 10-year average production of 5.67 million 60-kg bags, supported by a steady compound annual growth rate (CAGR) of 2%. The Indian coffee market is expected to grow at a CAGR of 8.9% by 2028. Additionally, India’s out-of-home coffee market is expected to grow at a CAGR of 15-20%, reaching US$ 2.6-3.2 billion by 2028. The Coffee Board of India projects an increase in coffee production to 4.03 lakh tonnes in FY26, compared to 3.6 lakh tonnes in FY25. The board is also aiming to significantly increase production to 9 lakh tonnes by 2047. The Board predicts a higher output of Arabica at 1.18 lakh tonnes in FY26, up from 1.05 lakh tonnes in FY25, while robusta production is anticipated to rise to 2.84 lakh tonnes from 2.57 lakh tonnes.
India’s coffee production trend (tonnes)
Source: Coffee Board of India
Note: *Final Estimate, ** Post Blossom Estimate
Coffee is produced in the southern part of India. Karnataka is the largest producer accounting for about 71% of the total coffee production in India. Kerala is the second-largest producer of coffee but accounts only for about 20% of the total production. Tamil Nadu is the third-largest producer with 5% of India’s total coffee production. Half of Tamil Nadu’s coffee is made in the Nilgiri district, a major Arabica growing region. Orissa and the north-eastern areas have a smaller proportion of production.
Export Trend
India’s coffee export trend (US$ million)
Source: Ministry of Commerce and Industry, AgriXchange
Coffee is one of the world’s most popular commodities, and India’s coffee exports continue to witness steady demand across global markets. In FY26, India’s coffee exports were valued at US$ 2.08 billion. The country exports coffee to a wide range of international destinations, with Europe and West Asia being key markets.
Italy emerged as the largest importer of Indian coffee, accounting for 16.39% of total exports, followed by Germany (9.26%) and Russia (8.09%). Other significant export destinations include the United Arab Emirates (5.22%), Belgium (4.96%), and the United States (4.24%). Countries such as Jordan (3.72%) and Libya (2.79%) also contributed notably to India’s coffee export basket. Additionally, Libya, Netherlands, Kuwait, Poland, and others, are important markets for Indian coffee, further diversifying the country’s export portfolio.
The strong presence of European countries among the top importers reflects the preference for Robusta coffee, which is widely produced in India and favoured for its strong flavour profile. Overall, India’s coffee export performance highlights its growing global footprint and sustained demand across both traditional and emerging markets.
In recent years, India’s speciality coffee has become a popular product, garnering interest from global coffee enthusiasts. Speciality coffee is distinguished by careful cultivation practices, a clear origin, a routine of plucking, special processing, branding, handling, and appearance.
Top Export Destinations
India’s coffee exports in FY26 remained geographically diversified, with strong demand across Europe, West Asia and North America. In volume terms, Italy emerged as the leading destination, importing 65.15 million kgs of coffee, followed by Germany (30.40 million kgs) and Russia (17.95). The United Arab Emirates (17.60 million kgs), highlighting strong demand across both traditional and emerging coffee-consuming regions. In value terms, Italy led with exports worth US$ 341.27 million, followed by Germany (US$ 192.86 million), Russia (US$ 168.41 million) and United Arab Emirates (US$ 108.63).
Other major destinations included Belgium (16.42 million kgs; US$ 103.21 million), the United States (5.76 million kgs; US$ 88.30 million), Jordan (10.52 million kgs; US$ 77.49 million) and Libya (11.18 million kgs; US$ 58.18 million). With total coffee exports reaching 307.75 million kgs, valued at US$ 2,082.70 million, the broad-based destination mix reflects India’s strong positioning in global coffee trade, supported by steady demand for green coffee beans, instant coffee and value-added specialty blends.
Country-wise import share of Indian coffee (FY26)
Source: Ministry of Commerce and Industry
Government Initiatives
India’s export performance has been particularly notable in value terms, even amid volume fluctuations, indicating improved price realisation and a shift toward higher-value and specialty coffee segments. The rise in instant coffee exports and premium positioning has further strengthened export earnings and global competitiveness.
Monthly and periodic trends also highlight robust momentum, with coffee shipments recording significant growth (e.g., double-digit increases in key months and 15% rise in H1 export value), indicating sustained international demand and market expansion.
Government initiatives have played a key role in supporting export growth. The government is actively expanding market access through Free Trade Agreements (FTAs) with regions such as EFTA and the UK, enabling Indian coffee to tap high-value global markets. Additionally, efforts are underway to enhance global promotion through market intelligence studies across key regions, including Europe, North America, Russia, and Asia, helping exporters identify new opportunities and strengthen trade linkages.
The Government of India took the initiative to provide subsidies to the farmers of US$ 2,500-US$ 3,500 per hectare for developing coffee in the conventional regions. Additional assistance for water augmentation, equipment, marketing, and promotion is also provided under the schemes. The government also supports the non-traditional coffee-growing regions under Coffee Development Programmes (CDP). Additionally, by the national policy of tribal development, coffee cultivation is being encouraged in non-traditional areas such as Andhra Pradesh, Orissa, Maharashtra, the northeastern states, and Andaman and the Nicobar Islands. Under various export promotion initiatives, transit and freight assistance are provided to help maximize export earnings.
Export Promotion Scheme - Providing Export Incentive
The scheme aims to maximize export earnings by enhancing the market share of value-added coffees and high-value differentiated coffees in important international markets. The government provides an export incentive of Rs. 2/- per kg (US$ 0.02/- per kg) for exporting high-value green coffees to high-value markets such as the USA, Canada, Japan, Australia, New Zealand, South Korea, Finland, and Norway. There is also an incentive of Rs. 3/- per kg (US$ 0.03/- per kg) for the export of value-added coffees in retail consumer packs exported as “India Brand” calculated on the green coffee utilized for preparation at the maximum rate of 2.6 kg for instant/soluble coffee and 1.19 kgs for Roasted coffee seeds and R & G Coffees.
Government Body
Coffee Board of India
The Coffee Board of India is a statutory body established in 1942 under the Coffee Act and functions under the Ministry of Commerce and Industry. Headquartered in Bengaluru, it is responsible for promoting the development of the coffee sector in India. The Board supports coffee growers through research, technical assistance, and quality improvement initiatives, while also facilitating domestic marketing and exports. It plays a key role in strengthening the entire coffee value chain, from production to global promotion of Indian coffee.
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Website: www.indiacoffee.org
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