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

Monday, 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 final estimate (~30% Arabica / ~70% Robusta) Source: Coffee Board of India, self-reported final estimates — not third-party audited.
Karnataka alone grows about 69% of India's coffee. Source: Coffee Board 2025-26 final estimate.
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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 September 2025 post-blossom forecast of roughly 403,000 tonnes (an 11% jump) was cut at final estimate to 373,000 tonnes, only about 2.6% above 2024-25, so there is no trend break in the Board's own final numbers.
  • Karnataka grows roughly 69% of India's coffee by volume (256,695 of 373,000 tonnes, 2025-26 final 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.
Updated 13 October 2026. The 403,000-tonne figure described below as issued “after this piece went up” is the Coffee Board’s 2025-26 post-blossom estimate, which was reported in September 2025, nearly a year before this article. It preceded, rather than followed, the 373,000-tonne figure used elsewhere in the article, which is the Board’s final 2025-26 estimate, not a second-advance one. The Board’s final 2025-26 number (373,000 tonnes) and its 2026-27 post-blossom estimate (404,000 tonnes) have since been found on its statistics page (see the 25 October 2026 correction before the sources section). A USDA projection of about 3.68 lakh tonnes for 2026-27 (down about 4%, weather) is dated May 2026. Sources: Agro Spectrum India, Sep 2025, BW Retail World. The text below was corrected on 25 October 2026.
Updated 7 November 2026. Calendar-2026 exports have kept the value-led pattern described below: Coffee Board data show shipments in January–June 2026 up about 25% to 2,55,587 tonnes and earnings up about 13% to about $1.3 billion, with Robusta (1,26,180 t) and instant coffee (89,368 t) doing most of the work and Arabica down sharply (Deccan Herald). The Board has not yet issued a post-monsoon estimate for 2026-27; analysts flag the weak June monsoon in Karnataka and Kerala as the main risk to its 404,000-tonne post-blossom figure (StoneX, read via search snippet).

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 (corrected 25 October 2026): the Coffee Board's post-blossom forecast for 2025-26, reported in September 2025, put the crop at roughly 403,000 tonnes (118,125 Arabica / 284,875 Robusta), which would have been an 11% jump over 2024-25's tally of 363,500 tonnes. That forecast did not hold. The Board's own statistics page now gives a final 2025-26 estimate of 373,000 tonnes (111,000 Arabica / 262,000 Robusta) — about 7% below the forecast and only about 2.6% above 2024-25. The 373,000-tonne figure used in the table below is that final estimate, not a mid-season one. So the 2025-26 crop is not a trend break: it sits inside the decade of stagnation described above, and one estimate revised down is not growth. The Board's 2026-27 post-blossom estimate is 404,000 tonnes (120,000 Arabica / 284,000 Robusta), about 8% above the 2025-26 final — a forecast, and the kind of number that was cut once already.

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 cultivation—A genuinely small, expansion-stage footprint
India total~111,000~262,000~373,000~30% Arabica / ~70% Robusta nationally

Coffee Board 2025-26 final estimate (Coffee Statistics, “Production in Major States/Districts of India”), 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 Board's 2026-27 post-blossom estimate of 404,000 tonnes survives to the final estimate — the 403,000-tonne 2025-26 forecast was cut to 373,000 tonnes, so the gap between forecast and final is itself the thing to watch before reading any single season as a trend break.
  • 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.

What would fix this

  • The Coffee Board should publish state-wise area under coffee, by Arabica and Robusta, on its public statistics page every year, so that Karnataka's roughly 71 per cent area share and the Northeast's 6,039 hectares can be confirmed from a Board table rather than industry compilations.
  • The Coffee Board should publish a revision table for every crop year showing its post-blossom, post-monsoon and final estimates side by side, so that a gap such as the 403,000-tonne 2025-26 post-blossom forecast against the 373,000-tonne final estimate can be read at a glance as estimate revision rather than real growth.
  • The Coffee Board should report ICDP replanting achieved each year, in hectares by state and variety, with subsidy disbursed by tranche, so that whether the ₹950 crore programme is reversing the Arabica yield decline can be tracked against what was actually replanted.
  • The Coffee Board should publish the current balance and annual disbursements of the coffee Price Stabilization Fund and payouts under the Rainfall Insurance Scheme for Coffee, so that growers exposed to global price swings on a 95 per cent export crop know what protection actually operates.

These are proposals from this blog, not recommendations any agency has adopted.

Corrected 25 October 2026. The 2025-26 Coffee Board crop was described as a post-blossom estimate of 403,000 tonnes (+11% on 2024-25) and the 373,000-tonne total as a “second-advance” estimate. The Board’s Coffee Statistics page shows 373,000 tonnes as the final 2025-26 estimate (about +2.6% on 363,500 tonnes), so the 403,000 figure was a forecast that was cut by about 30,000 tonnes, not real growth. Source: Coffee Board of India, Coffee Statistics.

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 final estimates (2025-26) 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 forecast (403,000 tonnes, +11%) is from Agro Spectrum India's report of 19 September 2025 and was superseded: the Board's Coffee Statistics page gives 373,000 tonnes as the final 2025-26 estimate. The 2024-25 base (363,500 tonnes) is from the same Agro Spectrum report and is not in the Board's current table, so the +2.6% is this article's own arithmetic. ICDP scheme terms (outlay, subsidy amounts, senile-bush age thresholds) are sourced directly to Coffee Board circular and guideline PDFs, a strong primary source; the 25/40/15-year senile-bush thresholds were re-checked against the Board's Modalities of ICDP. 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. Update of 7 November 2026: Deccan Herald (January–June 2026 exports, Coffee Board data); StoneX (monsoon risk; search snippet only).

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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