Indian Coffee Brews Global Demand

Context

India’s coffee exports reached  $1.29 billion in FY 2023-24, almost double the $719.42 million in 2020-21.

About Coffee

• Coffee cultivation in India began in the 1600s when Baba Budan, a legendary saint, brought seven Mocha seeds to Karnataka’s Baba Budan Giri hills.
• Climatic Conditions for Coffee Cultivation:
  • Temperature: Ideal range is 15°C to 28°C.
  • Rainfall: Requires 150-250 cm of annual rainfall.
  • Soil: Grows best in well-drained, loamy soil rich in humus and minerals like iron and calcium.
• Coffee Production:
  • India is the 7th largest coffee producer globally.
  • Top Coffee producers worldwide: (1) Brazil (2) Vietnam (3) Columbia
  • Approximately three-fourths of India’s coffee production consists of Arabica and Robusta
  • Italy is India’s largest export market for coffee.
• Success Story: Araku Valley (Andhra Pradesh):
  • Nearly 150,000 tribal families in collaboration with the Coffee Board and the Integrated Tribal Development Agency (ITDA) have increased coffee production by 20%.

India’s Coffee Production

1. Global Standing:
   India is the 7th largest coffee producer globally, contributing about 3% to worldwide coffee production.
2. Major Coffee Varieties:
   Indian coffee primarily consists of two varieties:
   • Arabica: Known for its mild flavor and high acidity, it is preferred in specialty coffee markets.
   • Robusta: A stronger, disease-resistant variety with a high caffeine content, popular for instant coffee.
     Approximately three-fourths of India’s coffee production is dedicated to these two varieties.
3. Export Market:
   • Italy is India’s largest coffee export destination, followed by Germany, Belgium, and Russia.
   • Indian coffee is highly sought after for its unique flavor profile, resulting from the shade-grown cultivation method.
4. Leading States for Coffee Cultivation:
   • Karnataka: Accounts for nearly 70% of India’s coffee production, particularly in Chikmagalur, Kodagu, and Hassan districts.
   • Kerala: Contributes around 20%, with coffee farms in Wayanad, Idukki, and Malappuram.
   • Tamil Nadu: Produces 5-6%, mainly in the Nilgiris and Yercaud hills.

Challenges in India’s Coffee Industry

1. Climate Change:
   Rising temperatures, erratic rainfall, and the increased frequency of pests like white stem borers threaten coffee yields.
2. High Production Costs:
   Small and medium coffee growers often struggle with rising input costs, limited mechanization, and fluctuating coffee prices.
3. Global Competition:
   India faces stiff competition from top coffee-producing nations like Brazil and Vietnam, which benefit from larger-scale operations and lower production costs.
4. Infrastructure and Marketing Gaps:
   Despite high-quality production, Indian coffee lacks adequate marketing and branding on global platforms.

Future Prospects and Government Initiatives

1. Promotion of Specialty Coffee:
   Focus on promoting India’s specialty coffees, such as Monsooned Malabar and organic Araku coffee, in niche markets.
2. Support for Small Farmers:
   The government provides subsidies for coffee replantation, irrigation facilities, and research on pest-resistant varieties.
3. Expanding Export Markets:
   Efforts are underway to explore newer markets in Asia and the Middle East, enhancing India’s export potential.
4. Sustainable Practices:
   Promoting eco-friendly farming techniques to mitigate the impact of climate change and enhance soil health.

Sharing is caring!