India’s Coffee Surge: From the Hills to the World Stage

India’s coffee story is fast becoming a global success. Once confined largely to the misty hills of Karnataka and Kerala, Indian coffee has now found admirers across continents. With exports crossing US $1.8 billion in FY 2024–25, marking an impressive 40 percent jump from the previous year, the country is on track to touch the historic US $2 billion mark in global trade. This achievement is not a coincidence — it reflects a carefully nurtured combination of government support, trade diplomacy, and the tireless efforts of India’s small farmers who grow coffee in the shade of tropical forests.

Representational Image from Economic Times

A Growing Legacy in Every Bean

India’s tryst with coffee dates back to the 17th century when Baba Budan is said to have smuggled seven seeds from Yemen to the hills of Chikkamagaluru. What began as a local experiment has grown into a thriving export-driven industry. Today, India stands as the seventh-largest coffee producer in the world, and among the top ten exporters globally.

Most of India’s coffee comes from the southern states, particularly Karnataka, Kerala, and Tamil Nadu, with emerging regions like Odisha’s Koraput and the Northeast adding new dimensions to the coffee map. Prime Minister Narendra Modi, in his Mann Ki Baat address, lauded this development, noting that “Indian coffee is becoming very popular all over the world.” He also highlighted how these new coffee-growing regions, especially in tribal belts, are empowering women and improving local livelihoods.

The Export Boom and Expanding Markets

Indian coffee is now exported to more than 50 countries, with Europe leading as the largest destination. Italy, Germany, Belgium, and Russia continue to be key buyers of Indian beans, while newer markets such as the UK and Switzerland are showing rapid growth, especially after the India–EFTA Free Trade Agreement came into effect.

Exports are not limited to raw coffee beans anymore. India is steadily climbing up the value chain, exporting roasted, instant, and specialty coffee to meet global demand for premium brews. In the last eleven years, exports have risen by more than 125 percent, propelled by robust international demand, improved processing techniques, and digital trade platforms that connect Indian producers directly with global roasters.

The Power of Policy and Trade Diplomacy

One of the biggest catalysts behind this rise is India’s growing trade footprint. The operationalisation of the India–EFTA FTA has opened new access to high-value European coffee markets, while the upcoming India-EU trade agreement promises even greater potential.

At home, the Coffee Board of India and the central government have played a crucial role through financial assistance, marketing support, and modernisation of plantations. These measures have encouraged both traditional and non-traditional regions to diversify into coffee cultivation. The result is a more inclusive coffee economy that blends export ambition with local empowerment.

Challenges Brewing Beneath the Surface

Despite the optimism, the coffee sector faces significant challenges. Weather variability has impacted output in recent years, and reports suggest that India’s coffee production could fall by over ten percent in 2025 due to erratic rainfall and pest outbreaks.

Additionally, exporters must now navigate stringent sustainability norms imposed by Europe’s Deforestation Regulation, which mandates deforestation-free certification and traceability of supply chains. For thousands of small growers who rely on traditional methods, this presents both a compliance and financial challenge.

Fluctuating global prices and limited domestic consumption also remain hurdles. While India’s café culture is expanding, per-capita coffee consumption still lags far behind Western nations, restricting internal market growth.

Future Outlook: Brewing Opportunities

Yet, within these challenges lies immense potential. The Coffee Board envisions a long-term goal of raising output to nearly nine lakh tonnes by 2047 through innovation, sustainable farming, and expansion into new regions. The growing global appetite for specialty, organic, and single-origin coffee presents India with the chance to redefine its coffee identity.

Rising urbanisation and the rapid growth of café chains have begun changing domestic consumption habits, too. India’s coffee market is expected to grow at nearly nine percent CAGR by 2028, driven by young consumers and a booming middle class. As digital marketplaces reduce dependence on middlemen, Indian coffee brands are finding direct access to customers worldwide, strengthening the “Made in India” coffee narrative.

The MGMM Outlook

India’s coffee journey reflects the country’s broader spirit of self-reliance and innovation. Once limited to a few hilly regions, coffee cultivation has now become a symbol of rural empowerment and India’s expanding global footprint. The recent export surge — crossing $1.8 billion with expectations to hit $2 billion — showcases how small farmers, tribal communities, and women cultivators are rewriting India’s agricultural story. Prime Minister Narendra Modi’s acknowledgment of this progress highlights how government initiatives, trade diplomacy, and sustainable farming are transforming India’s economy from the grassroots. What began as a humble local endeavor in the hills of Chikkamagaluru now represents a powerful blend of heritage and modernity.

However, this success does not come without challenges. The sector faces unpredictable weather, stricter sustainability norms, and the struggle to boost domestic consumption. Yet, these hurdles only underline India’s resilience. As the nation moves toward 2047, its coffee industry stands as a model for how traditional practices can align with global standards. Every cup of Indian coffee embodies not just taste, but the story of empowerment, sustainability, and national pride — a true reflection of “Atmanirbhar Bharat.”

(Sources: Hindustan Times, Economic Times, Times of India)