Introduction
India remained the 7th largest coffee producer globally in Marketing Year (MY) 2025 (October–September), reinforcing its position as a key player in the international coffee market. Over MY 2016–2025, the country recorded a 10-year average production of 5.67 million 60-kg bags, supported by a steady compound annual growth rate (CAGR) of 2%. The Coffee Board's post-blossom estimates places India's coffee production at 4.04 lakh tonnes in FY27, up from 3.73 lakh tonnes in FY26, with Arabica output rising from 1.11 lakh tonnes to 1.20 lakh tonnes and Robusta from 2.62 lakh tonnes to 2.84 lakh tonnes over the period. Karnataka remains India's largest coffee producer, accounting for about 69% of national output in FY26, followed by Kerala at around 22% and Tamil Nadu at 5%. Within Karnataka, Kodagu leads production while Chikkamagaluru covers the largest area under cultivation, and among non-traditional regions, Andhra Pradesh is emerging with output projected to rise from 15,290 tonnes in FY26 to 19,650 tonnes in FY27.
India’s coffee production trend (tonnes)
Source: Coffee Board of India
Note: * Post Blossom Estimate
Export Trend
India’s coffee export trend (US$ million)
Source: Ministry of Commerce and Industry
India's coffee exports were valued at US$ 599.18 million during April-June 2026, reflecting continued global demand for the commodity. Europe and West Asia remained key markets, underlining the sustained international appetite for Indian coffee across both established and emerging destinations. Italy was the largest importer of Indian coffee during April-June 2026, accounting for a 15.11% share, followed by Germany at 10.99% and Russia at 6.46%. Belgium (5.54%), Jordan (4.74%), the USA (4.39%), Libya (4.32%), Netherlands (3.91%), Turkey (3.46%) and the UAE (3.21%) rounded out the top ten destinations.
The strong presence of European countries such as Italy, Germany, Belgium and the Netherlands among India's top coffee export destinations reflects sustained global preference for Robusta coffee, widely produced in India and valued for its strong flavour profile. West Asian markets like Jordan, Libya and the UAE further diversify India's export footprint, highlighting the coffee sector's growing global reach across both traditional and emerging markets.
In recent years, India’s speciality coffee has become a popular product, garnering interest from global coffee enthusiasts. Speciality coffee is distinguished by careful cultivation practices, a clear origin, a routine of plucking, special processing, branding, handling, and appearance.
Top Export Destinations
Italy led India's coffee exports during April-June 2026 in both volume and value, importing 19.69 million kgs worth US$ 90.56 million, followed by Germany (13.01 million kgs; US$ 65.82 million) and Russia (4.56 million kgs; US$ 38.72 million). Belgium (6.35 million kgs; US$ 33.18 million), Jordan (4.15 million kgs; US$ 28.39 million), the USA (1.72 million kgs; US$ 26.32 million) and Libya (5.88 million kgs; US$ 25.86 million) also featured among the top destinations, reflecting India's strong presence across both European and West Asian markets. Other notable destinations included Netherlands (3.79 million kgs; US$ 23.44 million), Turkey (3.91 million kgs; US$ 20.75 million), the UAE (2.97 million kgs; US$ 19.25 million), Egypt (2.76 million kgs; US$ 12.67 million), Australia (2.16 million kgs; US$ 12.48 million), France (1.84 million kgs; US$ 10.54 million), Saudi Arabia (1.71 million kgs; US$ 10.41 million) and Poland (1.35 million kgs; US$ 10.17 million). Total coffee exports for the quarter stood at 102.99 million kgs, valued at US$ 599.18 million, underlining the broad-based and diversified nature of India's coffee export basket.
Share of Indian coffee Exported - Country-wise (FY27 till June 2026)
Source: Ministry of Commerce and Industry
Government Initiatives
India’s export performance has been particularly notable in value terms, even amid volume fluctuations, indicating improved price realisation and a shift toward higher-value and specialty coffee segments. The rise in instant coffee exports and premium positioning has further strengthened export earnings and global competitiveness.
Monthly and periodic trends also highlight robust momentum, with coffee shipments recording significant growth (e.g., double-digit increases in key months and 15% rise in H1 export value), indicating sustained international demand and market expansion.
Government initiatives have played a key role in supporting export growth. The government is actively expanding market access through Free Trade Agreements (FTAs) with regions such as EFTA and the UK, enabling Indian coffee to tap high-value global markets. Additionally, efforts are underway to enhance global promotion through market intelligence studies across key regions, including Europe, North America, Russia, and Asia, helping exporters identify new opportunities and strengthen trade linkages.
The Government of India took the initiative to provide subsidies to the farmers of US$ 2,500-US$ 3,500 per hectare for developing coffee in the conventional regions. Additional assistance for water augmentation, equipment, marketing, and promotion is also provided under the schemes. The government also supports the non-traditional coffee-growing regions under Coffee Development Programmes (CDP). Additionally, by 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 various export promotion initiatives, transit and freight assistance are provided to help maximize export earnings.
Export Promotion Scheme - Providing Export Incentive
The scheme aims to maximize export earnings by enhancing the market share of value-added coffees and high-value differentiated coffees in important international markets. The government provides an export incentive of Rs. 2/- per kg (US$ 0.02/- per kg) for exporting high-value green coffees to high-value markets such as the USA, Canada, Japan, Australia, New Zealand, South Korea, Finland, and Norway. There is also an incentive of Rs. 3/- per kg (US$ 0.03/- per kg) for the export of value-added coffees in retail consumer packs exported as “India Brand” calculated on the green coffee utilized for preparation at the maximum rate of 2.6 kg for instant/soluble coffee and 1.19 kgs for Roasted coffee seeds and R & G Coffees.
Government Body
Coffee Board of India
The Coffee Board of India is a statutory body established in 1942 under the Coffee Act and functions under the Ministry of Commerce and Industry. Headquartered in Bengaluru, it is responsible for promoting the development of the coffee sector in India. The Board supports coffee growers through research, technical assistance, and quality improvement initiatives, while also facilitating domestic marketing and exports. It plays a key role in strengthening the entire coffee value chain, from production to global promotion of Indian coffee.
FAQs
Italy leads India's coffee exports with a 15.11% share, followed by Germany (10.99%) and Russia (6.46%) during April-June 2026. Belgium, Jordan, the USA, Libya, Netherlands, Turkey and the UAE round out the top ten destinations for coffee exports.
India's coffee exports have grown significantly, rising from US$ 739 million in FY20 to US$ 2,082 million in FY26, before reaching US$ 599.18 million during April-June 2026 (FY27) alone. Strong price realisation and a shift toward high-value and specialty segments have strengthened Indian coffee exports even amid volume fluctuations across the coffee export market.
India's coffee export basket includes green coffee, instant/soluble coffee, and roasted coffee, with rising exports of value-added and specialty coffee segments. This premium positioning has boosted earnings from the coffee industry, alongside traditional Arabica and Robusta green coffee shipments.
The government provides export incentives of Rs. 2 per kg for high-value green coffee and Rs. 3 per kg for value-added "India Brand" coffee to boost coffee exports. Free Trade Agreements with EFTA and the UK, along with subsidies of US$ 2,500-3,500 per hectare, further support the coffee export market.
Karnataka is India's largest coffee producer, accounting for about 69% of national output in FY26, followed by Kerala (22%) and Tamil Nadu (5%). Within Karnataka, Kodagu leads production, while Andhra Pradesh is an emerging non-traditional coffee-growing region.
India's coffee processing industry is increasingly driving value-added exports, with instant coffee and specialty coffee segments improving price realisation. Careful cultivation, origin-specific processing, and premium branding have strengthened India's coffee export market globally.
Rising global demand for specialty and Robusta coffee, government export incentives, and expanding Free Trade Agreements are key drivers of coffee exports growth. Strong momentum is also reflected in periodic trends, including a 15% rise in H1 export value.
India is expanding market access through FTAs with EFTA and the UK, alongside market intelligence studies across Europe, North America, Russia and Asia. These efforts, combined with export incentives, are strengthening India's position in the global coffee export market.
Beyond established European destinations, West Asian markets like Jordan, Libya and the UAE are diversifying India's coffee exports footprint. High-value markets such as the USA, Canada, Japan, Australia and South Korea are also key targets under export incentive schemes.
The outlook for India's coffee export industry remains positive, supported by rising production estimates, growing specialty coffee demand, and continued government support through the coffee processing industry and export incentive schemes. Expanding FTAs are expected to further strengthen India's global coffee export market position.
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