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Stats IQ: India and Coffee Production

Context: India is among the top 10 coffee-producing countries. India produced about 4,00,000 tonnes of coffee in 2022-23.

Global Ranking
  • India is the sixth largest producer of coffee in the world, after Brazil, Vietnam, Colombia, Indonesia, Ethiopia and Honduras.
Types of Coffee
  • India produces two types of coffee:
  • Arabica: It has high market value due to its mild aromatic flavor.
  • Robusta coffee: It is used in making blends due to its strong flavor.
  • Robusta is the majorly manufactured coffee with a share of 72% of the total production.
Major States
  • Karnataka is the largest producer of coffee with 70% of the total coffee production in India.
  • Kerala is the second-largest producer of coffee accounting only for 23% of the total production.
  • Tamil Nadu is the third-largest producer with 6% of the coffee production.
  • Tamil Nadu’s coffee is made in the Nilgiri district, a major Arabica growing region.
  • Orissa and the northeastern areas have a smaller proportion of production.
  • The South Indian coffee is an admixture of coffee and chicory powders which is a herb native to Europe and Asia. Chicory is grown mainly in Uttar Pradesh and Gujarat.
Coffee Export
  • According to the Food and Agriculture Organization (FAO) statistics, India is the eighth largest exporter of coffee by volume.
  • In 2021-22, the total exports recorded a 42% rise to US$ 1.04 billion from the 2020.
  • In FY23, export of coffee stood at US$ 610.23 million, a 32.54% rise as compared to previous year.
Export Destinations
  • Italy, Germany, Belgium, and the Russian Federation are the largest importers of coffee from India, with an average total share of about 45%.
  • The other coffee importing countries are Libya, Poland, Jordan, Malaysia, the US, Slovenia, and Australia.
Export Trend
  • India majorly exports Robusta coffee beans, a coffee bean species with low acidity and high bitterness compared to Arabica coffee.
  • Green coffee beans, used in preparations of coffee (31% of which is instant coffee) also have a significant share in India’s export basket.
  • Almost one-third of India’s total coffee exports constitute instant coffee.
  • India’s specialty coffee is also a popular product which is distinguished by careful cultivation practices, a clear origin, a routine of plucking and special processing, branding, handling, and appearance.
Government Initiatives
  • The Government supports the non-traditional coffee-growing regions under Coffee Development Programmes (CDP).
  • In accordance with 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 the Export Promotion scheme the government aims to maximize export earnings by enhancing the market share of value-added coffees and high-value differentiated coffees in important high-value international markets.

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