How Govt Aims to Balance Local Thirst, Global Exports of Indian Coffee - Explained

As domestic coffee consumption in India shows a significant surge, the Coffee Board of India is preparing to recalibrate its strategy to strike a balance between internal demand and export obligations. Coffee Board of India is planning to enhance the productivity of coffee in the existing pockets of coffee plantation and also to cater to the growing demand, new pockets suitable for coffee plantation in North Eastern states and other parts of the country will be identified to initiate coffee plantation, alongside exploring new species of coffee for commercial purposes.

Coffee exports from India surged significantly in the last few years due to strong global demand. However, the domestic market grappled with challenges due to the rising prices and competition from other beverages. While exports are booming, reaching a record $1.8 billion in FY 2024-25, domestic consumption is also growing, albeit at a slower pace, driven by cafe culture and changing consumer preferences. 

Currently, nearly 70% of India’s coffee is exported, primarily to the European Union, the United States, and other global markets. Instant coffee from India is gradually gaining significant market share in Japan, Korea and West Asia, as per the Coffee Board.

However, with homegrown consumption on the rise, the Board is working closely with exporters to ensure both markets are adequately served.

“We are working on improving our production to meet the domestic and export market, so we have a ICDP integrated coffee development project, so we are mainly working on the productivity improvement in the traditional areas and the area expansion and also productivity improvement in the non-traditional areas and non-regional regions, so we have a target to improve the production,” said Neeraj Gaba, Director, Department of Commerce.

The Integrated Coffee Development Project (ICDP), a central scheme under the Ministry of Commerce and Industry, seeks to bolster output through productivity gains and area expansion in both traditional and emerging zones.

Expanding Plantations to Non-Traditional Zones

To meet future demand and unlock new production potential, the Board has mapped out a three-pronged approach. While continuing to nurture existing plantations in traditional coffee-growing regions like Karnataka and Kerala, it is also targeting two categories of non-traditional areas: forest-rich zones in the Northeast and other regions that require afforestation to create favourable conditions for coffee cultivation.

Support to farmers in these emerging areas will extend beyond mere plantation. Measures will include water augmentation, drying infrastructure, and guidance on replantation strategies aimed at long-term productivity enhancement.

Arabica coffee has already been successfully cultivated in parts of Odisha and Andhra Pradesh—an early indication that India's less conventional terrains can host viable coffee ecosystems. As the board notes, climatic suitability remains key, but regional variations in bean quality do not significantly hinder marketability.

“Coffee has already successfully been grown in Andhra, Orissa and also various north eastern conditions. There shall be slight difference in the quality, but the slight difference in the quality does not come in the way of its marketing, therefore as far as possible the climate wherever it matches, and we are trying to recommend that coffee can be grown,” said M Senthil Kumar, Director of Research, Coffee Board.

Technology Fuels Coffee Innovation

Beyond geography, science and technology are playing a pivotal role in shaping India’s next wave of coffee production. Researchers at the Coffee Board are now focusing on the development of hybrid saplings through tissue culture and genetic amalgamation. The goal: to produce resilient, high-yield plants that can thrive in a variety of agro-climatic conditions without compromising on taste.

These lab-tested hybrids reportedly match the flavour profile of naturally cultivated coffee, offering a path forward in environments previously considered marginal for the crop. Organizations like ISRO, Nestle are also working in tandem with the Coffee Board and coffee farmers to enhance the productivity, keeping the quality unaltered.

“We are taking these varieties in a tissue culture mode. We propagate through tissue culture to ensure that uniformity, and also viscosity, and also hierarchy. So, already we have taken up a lot of multiplication trials in the pharmaceuticals,” added Senthil Kumar.

Alongside, the Coffee Board is also helping coffee farmers to indentify other species of coffee plants that can be used for commercial purposes. As of now, only two species, robusta and Arabica are commercially used. But there are more than 120 species of coffee plants found in India. The idea is to identify new species or create a hybrid coffee sapling that would be more climate resilient and adaptable to ecological changes.

"We are doing plantation of several other species of coffee and we are trying to figure out what could be used for commercial purposes too. We have been able to spot a couple of plants which can be used more like an alternative to Arabica, " said Komal Sable, co-founder, South India Coffee Company, which exports coffee to the US and UK.

As India adapts to the dual challenge of feeding its growing domestic appetite and maintaining its foothold in global coffee markets, the Coffee Board’s multi-pronged strategy could set a new benchmark for sustainable and scalable agricultural policy.