India’s coffee exports are now on the verge of reaching new heights. The sector has been improving over the past few years. The Coffee Board of India projected coffee exports to cross $2 billion (₹18,145 crore) by the end of the fiscal year ending on March 31, 2026. The figures for the current financial year seem quite promising with green bean exports achieving $1.72 billion at the start of February month.
The Press Release by PIB Headquarters on November 29, 2025, highlights that the Indian coffee exports are expected to increase at CAGR 20%, between USD 2.6 billion to USD 3.2 billion by 2028. Further, the Coffee Board of India aims to scale the coffee production to 9 Lakh tonnes by 2047, making India a global coffee producer.
This will be a huge success for India’s agricultural exports. India’s position in the international market will be strengthened. If you are a coffee business enthusiast seeking coffee board registration in India, this writeup is for you.
India’s Coffee Export Performance
India’s coffee exports showed good results last financial year. The total export value in 2024-25 was about ₹16,330 crore ($1.8 billion). This is a big increase by 125% over the previous year, with Germany, Russia, and Italy as top export destinations.
For 2025-26 fiscal year, India’s coffee exports touched ₹15,604 crore in the beginning of the February month. There is still some time left until the end of the fiscal year. Starting from January 1 to February 9, coffee worth about ₹2,134.60 crore has been exported.
India’s coffee exports have exceeded $1 billion for the last four years. So, the demand for Indian coffee in the international market is steadily increasing.
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India’s Position in the Global Coffee Market
India is now a household name in the global coffee market. The country’s position is strong in both production and exports.
The important information is given below:
- India ranks 7th in the world in coffee production.
- India ranks 5th largest coffee producer.
- Potential production in 2025-26 is 403,000 tonnes.
- 96% of the coffee is exported from Karnataka, Kerala, and Tamil Nadu.
- Karnataka alone exports 72% coffee.
These three states of South India are known for coffee cultivation. Karnataka plays the biggest role. The weather and environment are good for coffee cultivation. India has been able to maintain its place in the global market.
Why are Export Earnings Rising despite Lower Volumes?
The volume of coffee exports in India has decreased, but the earnings have increased. 402,000 tonnes of coffee in 2024 and 384,000 tonnes export in 2025 is almost 4.47% less.
Exports of both Arabica and Robusta coffee beans have been declined, but their prices have increased in the global market. Production has decreased due to weather problems in Brazil and Vietnam. So, supply in the market is currently low.
When supply is low, prices increase. India is able to export with the higher price. So, total income has increased despite less exporting.
Read more – Coffee Startups in India
Major Export Destinations Driving Growth
A major portion of India’s coffee exports goes to Europe and West Asia. These global markets have maintained a stable demand for many years. Italy is India’s largest coffee buyer.
List of the Major export destinations:
- Italy
- Germany
- Belgium
- Russia
- United Arab Emirates
European countries prefer Indian Robusta coffee from India. There is also a growing demand for specialty coffee. Emerging Asian markets are also gradually showing interest. More emphasis is now being placed on quality and traceable coffee. This is creating new opportunities for India.
New Opportunities from India-UK Economic & Trade Agreement
The India-UK Comprehensive Economic and Trade Agreement was signed between India and the United Kingdom. So, new opportunities have been created for Indian coffee exports.
Key highlights of the India-UK Economic and Trade agreement:
- Duty-free access to instant and processed coffee.
- India’s coffee market share is currently 1.7% in the UK.
- Competitive advantage over Germany, Spain, and the Netherlands.
- Increased export potential for value-added products.
This agreement will provide Indian exporters with easy market access. This is a big opportunity for instant coffee. Demand for Indian coffee in the UK is likely to increase further in the future.
Rise of Value-Added and Instant Coffee Exports
A large portion of India’s coffee exports now comes from value-added products. About 38% of total exports come from processed coffee. Instant coffee plays a significant role in this.
Major Key Facts:
- India is a major hub for instant coffee production.
- The demand for processed coffee is gradually increasing.
- 38% of exports are value-added products.
- Higher profits compared to green beans.
- Opportunities in branding and premium markets.
The price of instant and roasted coffee is higher than that of regular raw coffee. So, exporters make more profit. Opportunities for branding in the international market are also increasing.
Production Trends and Domestic Consumption
In the financial year 2024-25, India’s coffee production was about 3.63 lakh metric tons, and 70% was exported. So, we can say the industry is mainly dependent on exports.
Significant highlights
- Total production: 3.63 lakh metric tons.
- 70% of coffee is exported abroad.
- Domestic consumption: Approx. 95,000 metric tons.
- Export-oriented industrial structure.
- There is scope to expand the domestic market.
The habit of drinking coffee in India is gradually increasing. Cafe culture has spread in urban areas. So, there are good prospects of increasing coffee production in the domestic market in the future.
Challenges and Global Market Risks in Coffee Exports (India)
There are some risks, even though India’s coffee exports are increasing. These issues need to be looked at seriously.
The main challenges are:
- Weather impact: Drought, heavy rains, or climate change affect production. This disrupts the global supply chain.
- Geopolitical uncertainty: War or international tensions can create problems in trade.
- Currency fluctuations: Changes in the value of the dollar affect export earnings.
- Competition: Brazil and Vietnam are the world’s largest coffee producers. Competing with them is tough.
- Diversification and quality improvement: To capture new markets, emphasis should be placed on good quality and new products.
Read more – What’s in the Indian Coffee Board’s Initiative for Crop Quality?
Future Outlook: Can India Sustain $2 Billion and beyond?
All things considered, the future looks positive. There can be record earnings in the current fiscal year. There will be a strong demand for Indian coffee in the international market.
India will also focus on sustainable farming and quality control in the future. Eco-friendly production has become important to many countries. There are opportunities in Europe, Asia, and the Middle East.
It is possible to reach a bigger goal of crossing the $2 billion mark if this momentum is maintained. This will strengthen India’s agricultural export market.
Conclusion
The $2 billion target of coffee exports for FY26 is a big milestone for India’s coffee industry. It proves India’s strong position in the international market. This progress became possible due to trade agreements and an emphasis on value-added products.
However, it is not enough to increase production. It is very important to keep export rules, standards, and documents. The business can be expanded with the right planning and advice.
If you want to enter the coffee export or agricultural export, Corpbiz can be by your side. We provide professional solutions in export compliance, IEC registration, advisory, and business support.
Read more – How to Start Coffee Export from India?
Answers to Common Questions About Coffee Exports
What is the Coffee Board’s export target for FY26?
The Coffee Board of India has targeted to export coffee worth over $2 billion in the 2025-26 financial year. It is about ₹18,145 crore. The export figures for the current year are going well. So, there is a possibility of meeting the target. It will be a big success for the country’s coffee sector.
Why are export earnings rising even though volumes declined?
The volume of exports has decreased slightly, but the price has increased in the international market. The supply has decreased due to weather problems in major producing countries like Brazil and Vietnam. So, India has been able to earn more by exporting less due to this increased price.
Which countries import the most Indian coffee?
The main buyer of Indian coffee is Italy. Germany, Belgium, Russia, and the United Arab Emirates are major markets. Europe has long been a major market for India. In addition, demand is increasing in West Asia. Indian Robusta and instant coffee are well accepted in these countries.
What impact will the India-UK trade agreement have on coffee exports?
The India-UK Comprehensive Economic and Trade Agreement with the United Kingdom is positive for Indian coffee exports. This agreement helps instant and processed coffee to get duty-free benefits. Although India's share in the UK is currently small, it may increase in the future. This will allow Indian exporters to compete well with their European competitors.
What are value-added coffee products?
Value-added coffee refers to processed coffee. Such as instant coffee, roasted coffee, or packaged coffee. These are ready for direct consumption. The price of these products is higher than raw green beans. So, exporters get more profit. More than 38% of India's total coffee exports come from such products.
Which Indian states produce the most coffee?
About 96% of India's coffee production comes from three states. These are Karnataka, Kerala, and Tamil Nadu. Out of these, Karnataka alone produces about 72% of the coffee. The climate of South India is suitable for coffee cultivation. The hilly terrain and good rainfall help increase production.
How much of India’s coffee production is exported?
About 70% of India’s total coffee production is exported abroad. In the 2024-25 fiscal year, the production was about 3.63 lakh metric tons. A large part of this is sent to the international market. Only 95,000 metric tons are used in the domestic market. So, this industry is dependent on exports.
What challenges does the coffee export sector face?
There are some risks in the coffee export sector. Changes in weather affect production. The international political situation can also hinder trade. Fluctuations in the value of the dollar affect income. Competition with countries like Brazil and Vietnam is also a big challenge.
How does India rank globally in coffee production and exports?
India ranks 7th in the world in coffee production and 5th in exports. There is good demand for Indian coffee in the international market. The southern Indian states produce more coffee. India has been able to maintain this position due to regular supply and quality. There is an opportunity to improve this position in the future.
How can exporters benefit from the projected growth in FY26?
There is a good opportunity for new exporters in the fiscal year 2025-26. Those able to produce value-added products with quality will get more profit. It is possible to grow the business quickly by entering new markets and following the right trade policies.
