India’s centuries-old coffee heritage is witnessing a resurgence as the country asserts itself as a major global coffee exporter, backed by rising production, strong policy support, and expanding international demand. According to the Coffee Board of India, Indian coffee—grown under unique two-tier shade systems and across diverse agro-climatic zones—has now evolved into a premium global commodity recognised for quality, sustainability, and craftsmanship.
India’s coffee story traces back to the 1600s, when Sufi saint Baba Budan brought seven coffee seeds from Yemen and planted them in the Baba Budan Giri hills of present-day Karnataka. Initially a garden crop, coffee cultivation expanded through the 18th century, eventually establishing India as a prominent producer. Today, coffee is grown across 4.91 lakh hectares in the Western and Eastern Ghats and the North-East, supporting over two million people, most of them small farmers who constitute 99 percent of holdings.
Karnataka remains the epicentre of production, contributing over 2.8 lakh metric tonnes (2025–26 post-blossom estimates), followed by Kerala and Tamil Nadu. India’s diverse geography has created 13 recognised coffee zones, with renowned regions such as Coorg, Chikkamagaluru, Araku Valley, Nilgiris, Wayanad, and Bababudangiris producing coffees celebrated worldwide for their distinct profiles.
India also holds seven Geographical Indication tags for regional and specialty coffees, including Coorg Arabica, Wayanad Robusta, Araku Valley Arabica, Bababudangiris Arabica, and the globally acclaimed Monsooned Malabar variety. Specialty coffees like Mysore Nuggets Extra Bold and Robusta Kaapi Royale have further enhanced India’s premium positioning in global markets.
The Coffee Board of India, established under the Coffee Act of 1942, remains central to the sector’s growth. Through research at the Central Coffee Research Institute, promotion initiatives, export facilitation, and the Integrated Coffee Development Project, the Board focuses on improving yield, quality, infrastructure, and market access. India Coffee Houses across major cities and events such as “The Fine Cup Awards” continue to promote domestic consumption and awareness.
India has emerged as the world’s fifth-largest coffee exporter, with shipments crossing USD 1.8 billion in FY 2024–25—a 40 percent rise from the previous year. During April–September 2025 alone, exports reached USD 1.07 billion, supported by strong demand from destinations such as Italy, Germany, Belgium, Russia, and the UAE. Nearly 70 percent of India’s annual production of around 3.6 lakh tonnes is exported to 128 countries.
Policy reforms have also provided a significant boost. The reduction of GST on instant coffee from 18 percent to 5 percent is expected to reduce retail prices and stimulate domestic consumption. New trade agreements, including the India–UK Comprehensive Economic and Trade Agreement (CETA) and the India–EFTA TEPA, have opened duty-free access for Indian roasted and instant coffees in premium markets such as the UK, Switzerland, Norway, and Iceland.
The success of tribal-led initiatives like Koraput Coffee in Odisha has added a powerful socio-economic dimension to India’s coffee narrative. Supported by the Tribal Development Co-operative Corporation of Odisha Ltd. (TDCCOL), tribal farmers in Koraput have gained national recognition through Fine Cup Awards and expanded market presence through branded cafés and value-added products.
The Coffee Board has set an ambitious target of scaling national production to 9 lakh tonnes by 2047, supported by a rapidly growing domestic café culture. India’s coffee market is projected to grow at a CAGR of 8.9 percent by 2028, with the out-of-home segment poised for 15–20 percent annual growth.
From its historic roots in the Baba Budan Giri hills to its rise as a global premium coffee exporter, India’s coffee sector today stands at a pivotal moment. With expanding specialty varieties, visionary policy support, and millions of smallholder farmers driving the ecosystem, India continues to brew a story of resilience, innovation, and sustainable growth—one that is now celebrated in cafés and coffee cups across the world.