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.