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India's Coffee Crop Hasn't Grown in a Decade. Its Export Earnings Have.

August 24, 2026

India grows roughly 4% of the world's coffee and ranks 7th globally by volume — a minor producer next to Brazil and Vietnam. But a third of what it exports now leaves as instant coffee and extracts, not raw green beans, and record export earnings say more about that shift than about any growth in the crop itself, which has been essentially flat for a decade.

Agriculture & Fertilisers · Trade & Tariffs · India · 24 August 2026

India's Coffee Crop Hasn't Grown in a Decade. Its Export Earnings Have.

India's Coffee Crop, by State (2025-26) Karnataka alone grows roughly 69% of the national total Karnataka 256,695 t (~69%) Kerala 80,350 t (~22%) Tamil Nadu 19,975 t (~5%) Andhra Pradesh (Araku Valley) 15,290 t (~4%) Odisha 470 t (negligible) India total: ~373,000 tonnes, 2025-26 second-advance estimate (~30% Arabica / ~70% Robusta) Source: Coffee Board of India, self-reported second-advance estimates — not third-party audited.
Karnataka alone grows about 69% of India's coffee. Source: Coffee Board 2025-26 second-advance estimates.
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The short version.

Ripening Robusta coffee seeds on the bush in Coorg, Karnataka
Robusta coffee ripening in Coorg, Karnataka — the district that alone grows roughly 69% of India's flat, decade-stagnant coffee crop. Ripe Seeds Coffee Robusta Coorg Karnataka India Feb24 D72 25688.jpg, Timothy A. Gonsalves, CC BY-SA 4.0, via Wikimedia Commons.
  • India is a minor coffee producer globally — roughly 4% of world output, ranked 7th behind Brazil (35%), Vietnam (18%), Colombia, Indonesia, Ethiopia and Uganda, on a crop that ran essentially flat for most of the past decade (~298,000 tonnes in 2019-20 versus ~302,000 in 2010-11) — though the Coffee Board's 2025-26 post-blossom estimate shows an 11% single-season jump to roughly 403,000 tonnes, the largest year-on-year move in this dataset.
  • Karnataka grows roughly 69% of India's coffee by volume (256,695 of 373,000 tonnes, 2025-26 estimate), almost entirely Robusta and Arabica in a roughly 71/29 area split; Kerala is a distant second and almost entirely Robusta.
  • India's own trade data shows instant coffee and extracts (HS 2101) now make up roughly a third of coffee export value ($735.87mn of a $2.14bn total, FY26) — more value-added than the commonly repeated "coffee mostly leaves as raw green beans" framing suggests.
  • The Integrated Coffee Development Project funds replanting on a specific ageing-bush clock: Arabica bushes are treated as senile at 25 years, Robusta at 40, Arabica dwarf varieties at 15.
  • Labour is roughly 65–70% of India's coffee production cost, against about 25% in Brazil — the single structural gap most repeatedly cited for why Indian coffee struggles on cost competitiveness.

A minor producer by world standards, and not a growing one

India grows coffee at meaningful scale — but not at a scale that matters much to the global market. At roughly 4% of world production and 7th place globally (Brazil alone accounts for about 35% of world output, Vietnam another 18%), India is a rounding error next to the two dominant producers. The crop has also not grown in any real sense over most of the past decade: production ran at roughly 298,000 tonnes in 2019-20 against roughly 302,000 tonnes in 2010-11, a decade of near-total stagnation on a bags-adjusted basis. Whatever growth story exists in Indian coffee right now has mostly been happening in exports and processing, not in the crop itself.

Update since this article was first published: the Coffee Board's own post-blossom estimate for 2025-26, issued after this piece went up, puts the crop at roughly 403,000 tonnes (118,125 Arabica / 284,875 Robusta) — an 11% jump over 2024-25's final tally of 363,500 tonnes. That's a real, single-year acceleration, not noise, and it sits on top of the 373,000-tonne second-advance estimate used elsewhere in this piece (the Board typically revises its in-season estimates upward as the harvest firms up). It doesn't erase the decade of stagnation described above — one strong year doesn't undo ten flat ones — but it's the first genuinely large year-on-year move in this dataset in a long time, and worth watching to see whether it's a weather-driven blip or the start of ICDP replanting finally showing up in the aggregate numbers.

Karnataka dominates; the Northeast push is still tiny

State / regionArabica (MT)Robusta (MT)Total (MT)Share of national output
Karnataka79,145177,550256,695~69%
Kerala2,07578,27580,350~22%, almost entirely Robusta
Tamil Nadu13,9456,03019,975~5%
Andhra Pradesh (Araku Valley, non-traditional)15,2405015,290~4%, tribal-farmer led
Odisha (non-traditional)4700470Negligible
Northeast states combined (Assam, Meghalaya, Mizoram, Nagaland, Arunachal Pradesh, Tripura, Manipur)~6,039 hectares under cultivationA genuinely small, expansion-stage footprint
India total~111,000~262,000~373,000~30% Arabica / ~70% Robusta nationally

Coffee Board 2025-26 second-advance estimates, self-reported and not third-party audited; state-level area figures (as opposed to production) were not available on the Coffee Board's public statistics page in this research and would need the Board's own Database PDFs to confirm precisely. Karnataka's area share is estimated at roughly 71% of the national ~450,000 hectares under coffee, Kerala roughly 21%, Tamil Nadu roughly 6% — moderate confidence, industry-compiled rather than directly confirmed against a Coffee Board area table.

The Araku Valley programme is the closest thing to an actual expansion story in Indian coffee: a tribal-farmer coffee project running since 1956 under the Girijan Cooperative Corporation, now GI-tagged (2019), covering roughly 1.5 lakh tribal farmers across roughly 2.5 lakh acres, with a stated Coffee Board target of 50,000 tonnes by 2047. That target, reached, would still leave Araku as a fraction of Karnataka's current output — the honest read is that Araku is a genuine social and branding success story, not yet a volume story that moves India's national numbers.

What India's own trade data says about the value-add story

CategoryFY26 exports (US$mn)FY26 imports (US$mn)
Green/roasted beans and related (HS 0901)1,405.85316.34
Instant coffee, coffee extracts and concentrates (HS 2101)735.8729.71
Total2,141.72346.05

This article's own analysis of the DGCI&S 8-digit trade series used elsewhere on this blog, FY2025-26.

Instant coffee and extracts make up roughly 34% of India's coffee export value, not a marginal by-product line. That complicates the commonly repeated claim that India exports coffee mostly as low-value raw green beans; on this blog's own trade data, a genuine third of the export book is already processed, higher-margin product. The Department of Commerce has separately confirmed record coffee export earnings of US$1.8 billion in FY2024-25, up 40.2% from $1.28 billion the prior year — India's fourth consecutive billion-dollar coffee-export year, and enough to rank it the world's 5th-largest coffee exporter by value. Italy, Germany, Belgium, Russia and the UAE were the leading destinations; April–September 2025 alone brought in $1.07 billion, suggesting FY2025-26 is tracking toward another record. This figure is broadly consistent with the trade-data totals above once accounting for the different fiscal-year window and the broader "all coffee products" scope of the Commerce Department's number versus this blog's own HS-code-specific tracing.

What the Coffee Board is actually funding

InitiativeWhat it targetsMechanism
Integrated Coffee Development Project (ICDP)Replanting, quality upgrade, water augmentation, mechanisation, area expansion₹950 crore outlay; replanting subsidy ₹50,000–2.75 lakh, disbursed 60–70%/30–40% across two tranches; senile-bush thresholds set at 25 years (Arabica), 40 years (Robusta), 15 years (Arabica dwarf varieties)
Araku/tribal coffee promotionNon-traditional, tribal-farmer-led expansion in Andhra PradeshGCC-run cooperative structure since 1956; GI tag granted 2019; Coffee Board target of 50,000 tonnes by 2047
Geographical Indication tagsBranding and price premium for specific growing regionsCoorg Arabica, Chikmagalur Arabica, Bababudangiris, Wayanad Robusta, Araku Valley Arabica, and Monsooned Malabar (Arabica and Robusta, tagged 2008)
"India Coffee" unified export brandFragmented regional branding in export marketsBundles the five GI-tagged varieties under one export-facing brand, backed by Indian missions in Germany, Finland, Belgium, China, Russia and Brazil
Certification support (Organic, Rainforest Alliance, Fair Trade)Access to premium certified-coffee marketsSubsidy support channelled through Self Help Groups; roughly 85% of Indian coffee remains uncertified
Price Stabilization Fund (coffee-specific, 2003) and Rainfall Insurance Scheme for Coffee (RISC)Price-crash and weather-risk protection for growersFollow-up research found Coffee Board material that refers to the Fund's Market Intelligence Unit coordinating it in the present tense, alongside the Board's other current grower-support programmes — suggesting it remains active rather than lapsed, though this article still could not find a recent disbursement figure or fund balance to confirm current scale of operation

ICDP terms are sourced to Coffee Board circular/guideline PDFs (coffeeboard.gov.in), a strong primary source. Araku Valley and GI-tag details are sourced to a mix of a Lok Sabha answer (via reporting, not independently re-fetched) and moderate-strength press (Deccan Chronicle, South Asia Monitor, newsonair.gov.in). Certification-support and Price Stabilization Fund details are sourced to moderate-to-weak secondary material (Arthapedia, industry explainers) and were not independently verified against Coffee Board's own current scheme documents.

Why the crop keeps struggling on cost

The structural problems cited for Indian coffee are consistent across sources, and none of them are new: roughly 98% of India's ~250,000 coffee growers are smallholders under 10 hectares, and 81% hold under 2 hectares — a genuinely fragmented base compared to the plantation-scale operations common in Brazil. Labour runs roughly 65–70% of India's coffee production cost against roughly 25% in Brazil, and rural-to-urban migration is repeatedly cited as tightening that labour supply further. Ageing Arabica bushes combined with white stem borer infestation have reportedly cut yields from around 500 kg/acre to 250 kg/acre in stressed pockets. Climate volatility adds to this rather than replacing it: the 2025-26 crop year saw Arabica yields down roughly 3% and Robusta down roughly 2%, attributed to excess rainfall disrupting flowering and fruit-set and encouraging fungal disease. And because roughly 95% of India's crop is exported — an unusually high share; most coffee-producing nations consume more of their own crop domestically — Indian growers carry direct exposure to global price swings that better-hedged or more domestically-absorbed producer bases do not.

India doesn't have a coffee production problem in the sense of falling output — the crop has simply stopped growing. What's actually moving is who processes it and where the money lands once it does.

What to watch

  • Whether the 2025-26 season's 11% production jump (403,000 tonnes) is a genuine trend break or a one-off — the single most important open question this update surfaces, and one the next season's estimates will answer directly.
  • Whether Araku Valley's 50,000-tonne 2047 target is on a credible trajectory, given it currently produces roughly 15,290 tonnes — a more-than-threefold increase over roughly two decades.
  • Whether the instant-coffee/extract share of exports keeps rising, which this blog's own trade data can track directly year over year, especially against a FY2025-26 export run-rate that's already ahead of FY2024-25's record pace.
  • Whether ICDP replanting actually reverses the Arabica yield decline in stressed growing regions, or whether climate volatility outpaces the scheme's replanting pace.

Sources and caveats

State-wise production figures (Karnataka, Kerala, Tamil Nadu, Andhra Pradesh/Araku, Odisha, Northeast area) and the national Arabica/Robusta split are sourced to Coffee Board's own published statistics (coffeeboard.gov.in/coffee-statistics.html), a strong primary source, though these are the Board's self-reported second-advance estimates rather than third-party-audited figures, and state-level area (as opposed to production) figures were not independently confirmed against a Coffee Board table in this research. India's global rank and production-share figures, and the decade-long stagnation comparison, are sourced to a mix of USDA FAS GAIN Coffee reports (a strong, India-independent US government source) and industry press (Fresh Cup Magazine, Daily Coffee News, Visual Capitalist), graded moderate. The coffee trade table (HS 0901 and HS 2101 coffee-specific codes) is this article's own analysis of the DGCI&S 8-digit trade dataset used elsewhere on this blog, FY2025-26. The $1.8 billion FY2024-25 export-earnings figure, the 40.2% growth rate, the "5th-largest exporter" and "fourth consecutive billion-dollar year" claims, and the destination/H1-FY26 figures were confirmed in a follow-up research pass via multiple independent outlets (World Ports Organization, pwOnlyIAS, DD News) citing the Department of Commerce, upgrading this figure from the moderate confidence originally assigned when the primary PIB page returned an access error. The 2025-26 post-blossom production estimate (403,000 tonnes, +11%) is independently confirmed via StoneX's Market Intelligence coverage of the Coffee Board's own post-blossom estimates, a strong secondary source reporting a primary Board figure not independently re-fetched from coffeeboard.gov.in directly. ICDP scheme terms (outlay, subsidy amounts, senile-bush age thresholds) are sourced directly to Coffee Board circular and guideline PDFs, a strong primary source. Araku Valley figures, GI-tag details, and the "India Coffee" brand initiative are sourced to a mix of moderate-strength press and secondary explainers (Deccan Chronicle, South Asia Monitor, newsonair.gov.in) and were not independently verified against Coffee Board's own current scheme documentation. The Price Stabilization Fund's status was partially clarified in the same follow-up pass — Coffee Board material referencing its Market Intelligence Unit describes the Fund in the present tense alongside other current programmes, suggesting it remains active, though no current disbursement figure or fund balance was found to confirm its present scale of operation; treat "active but unquantified" as the current state of knowledge rather than "unresolved." Structural cost and labour figures (98% smallholder share, 65-70% labour cost share, yield-decline figures) are sourced to a mix of academic (ResearchGate trend paper) and industry sources, graded moderate. This article does not size an investment opportunity, recommend a cultivation or trading decision, or draw a policy conclusion beyond what the cited data supports; nothing here is agricultural, investment or trade advice.

Related on this blog: India Exports the World’s Coco Peat. Its Own Highest-Value Crop Barely Uses Any of It. · India Grows the Most Coconuts in the World and Still Imports Copra · India’s $4.45 Billion Spice Export Book Is Really Eight Different Crops in Eight Different States · Cocoa’s Blockchain Reckoning: One Platform Failed, One Pilot Just Ended, and a Real Deadline Is Four Months Out — other single-commodity export-anomaly deep dives in this series.

About this article: Researched, written and edited by Umashankar Triplicane Dwarakanathan, with AI research assistance; every figure is meant to trace to the primary source cited. See the Editorial Policy for how sourcing, AI use and corrections work.

Umashankar Triplicane Dwarakanathan
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Umashankar Triplicane Dwarakanathan
Investment Promotion & Energy-Sector Leader · Chennai, Tamil Nadu, India
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