Commercial plantations of coffee started in India during the 18th century. Over the years, the Indian coffee industry has earned a distinct identity on the coffee map of the world. India is the only country in the world where all coffees are grown under a ‘well-defined two-tier shade canopy of evergreen leguminous trees’. India is today home to 16 unique varieties of coffees sourced from 13 distinct coffee growing regions; most of them in the southern part of the country. The different varieties of Indian coffees are well suited for cappuccinos and espressos alike and have no parallel in any other coffee growing nation globally. India’s coffee regions are one of the 25 biodiversity hotspots in the world.
Production
Coffee production in India grew rapidly in the 1950s, increasing from 18,893 tonnes in 1950-51 to 68,169 tonnes in 1960-61. Growth in India’s coffee industry, however, has been especially robust in the post-liberalization era, backed by the government’s decision to allow coffee planters to market their own products, rather than selling to a central pool. Coffee production in India stood at 348,000 metric tonnes (MT) in 2015-16. Robusta variety accounted for 244,500 MT (70.3 percent) of this production, while Arabica accounted for 103,500 MT (29.7 percent). The post-blossom estimate for 2016-17 is 320,000 MT (100,000 MT of Arabica and 220,000 MT of Robusta) India has emerged as the seventh-largest coffee producer globally; after Brazil, Vietnam, Columbia, Indonesia, Ethiopia, and Honduras. It accounted for 2 percent of the area under production and 3.7 percent of the production in 2012 as compared to 3.18 percent of production in 1992-93. In 2015-16, India accounted for 4.05% of global coffee production.
The area under coffee plantations in India has increased by more than three times, from 120.32 thousand hectares in 1960-61 to 397.147 thousand hectares in 2015-16. Most of this area is concentrated in the southern states of Karnataka (54.95%), Kerala (21.33%) and Tamil Nadu (8.18%). Productivity has also improved from around 567 kg/Ha in 1961 to around 876 kg/Ha during 2015-16. For the traditional areas, productivity has grown from 412 kg/Ha in 1961 to 1,008 kg/Ha in 2015-16. The industry is driven by the enterprise of around 280,241 coffee growers, out of which 99% are small growers, while 1% are medium to large growers. These plantations employ an average of around 632,993 people on a daily basis, as per estimates for 2015-16.
Explore n Major States/Districts Of India(in MTs)
State/District |
Post Blossom Estimate 2016-17 |
Final Estimate 2015-16 |
||||
Arabica |
Robusta |
Total |
Arabica |
Robusta |
Total |
|
Karnataka |
|
|
|
|
|
|
Chikmagalur |
38,750 |
38,035 |
76,785 |
40,600 |
41,400 |
82,000 |
Kodagu |
17,510 |
103,925 |
121,435 |
19,150 |
118,150 |
137,300 |
Hassan |
18,225 |
12,900 |
31,125 |
18,900 |
13,320 |
32,220 |
Sub total |
74,485 |
154,860 |
229,345 |
78,650 |
172,870 |
251,520 |
|
|
|
|
|
|
|
Kerala |
|
|
|
|
|
|
Wayanad0 |
0 |
51,950 |
51,950, |
0 |
57,850 |
57,850 |
Travancore |
990 |
6,750 |
7,740 |
1,000 |
7,480 |
8,480 |
Nelliampathies |
1,150 |
300 |
2,750 |
1,200 |
1,700 |
2,900 |
Sub total |
2,140 |
60,300 |
62,440 62 |
2,200 |
67,030 |
69,230 |
|
|
|
|
|
|
|
Tamil Nadu |
|
|
|
|
|
|
Pulneys |
6,550 |
365 |
6,915 |
6,785 |
340 |
7,125 |
Nilgiris |
1,400 |
3,750 |
5,150 |
1,325 |
3,575 |
4,900 |
Shevroys (Salem) |
3,625 |
70 |
3,695 |
3,400 |
70 |
3,470 |
Anamalais (Coimbatore) |
1,300 |
500 |
1,800 |
1,300 |
500 |
1,800 |
Sub total |
12,875 |
4,685 |
17,560 |
12,810 |
4,485 |
17,295 |
|
|
|
|
|
|
|
Non-Traditional Areas |
|
|
|
|
|
|
Andhra Pradesh |
9,750 |
50 |
9,800 |
9,150 |
50 |
9,200 |
Orissa |
650 |
0 |
650 |
600 |
0 |
600 |
Sub Total |
10,400 |
50 |
10,450 |
9,750 |
50 |
9,800 |
North Eastern Region |
100 |
105 |
205 |
90 |
65 |
155 |
Grand Total (India) |
100,000 |
220,000 |
320,000 |
103,500 |
244,500 |
348,000 |
Exports
India exports coffee to over 45 countries. The total coffee exports from the country stood at 277,696 MT in 2015-16 (provisional based on export permits from April 1, 2015, to February 29, 2016) against the target of 265,000 MT, fetching the value of Rs 164,187/tonne. Export earnings have increased from Rs 1050.36 crore (US$ 177.26 million) in 2001-02 to Rs 4,559.42 crore (US$ 699.67 million) in 2015-16 (provisional based on export permits from April 1, 2015, to February 29, 2016), growing at a CAGR of 11.05% during the period. Italy was the largest export market for Indian coffee, importing 59,968 MT (21.1% of India’s total exports) in 2014-15. It was followed by Germany (26,190 MT), Russian Federation (22,460 MT), Turkey (15,878 MT) and Belgium (12,209 MT). Significantly, value-added coffee exports have improved their share to reach 95,481 MT in 2014-15 (from October 1, 2014, to September 30, 2015).
No.of Holdings
Name of the Region
|
2014-15 |
||
<10 |
>10 |
Total |
|
Chikmagalur |
14853 |
1166 |
16019 |
Hassan |
11228 |
350 |
11578 |
Madikeri |
20422 |
236 |
20658 |
Virajpet |
22864 |
253 |
23117 |
Total for Karnataka |
69367 |
2005 |
71372 |
Kerala |
77110 |
275 |
77385 |
Tamil Nadu |
15379 |
343 |
15722 |
Total for Traditional Areas |
161856 |
2623 |
164479 |
Non Traditional Areas |
151842 |
26 |
151868 |
NER Region |
9055 |
9 |
9064 |
Grand total |
322753 |
2658 |
325411 |
Export of coffee from India – Top 10 countries in 2014-15
Destination |
Quantity (in MT) |
Unit value in Rs/tonne |
Italy |
79,692 |
143,086 |
Russian Federation |
27,858 |
169,134 |
Germany |
27,600 |
167,840 |
Belgium |
16,600 |
184,251 |
Turkey |
14,307 |
170,073 |
Slovenia |
10,886 |
123,694 |
Jordan |
10,076 |
216,646 |
Australia |
6,741 |
188,884 |
Greece |
6,646 |
129,619 |
Poland |
6,507 |
141,724 |
Domestic market
While coffee in India has traditionally been an export-oriented commodity, coffee planters in India are finding significant traction in the domestic market as well. India’s domestic coffee consumption has increased steadily from around 50,000 MT in 1998 to 115,000 MT in 2011 (provisional estimates), registering a CAGR of 6.09%. This has led to the setting up of a number of international and Indian coffee retail chains in the country in recent years like Lavazza, Café Coffee Day, Costa, Gloria Jean’s Coffee, Coffee Bean & Tea Leaf; and Starbucks in a 50:50 JV with Tata Global Beverages.
Besides viewing India as a market, these chains are also recognizing the fine quality and value proposition that is characteristic to India’s coffee plantations; thanks to a rich legacy that spans more than four centuries. Consequently, they are also looking to develop a deeper and sustainable sourcing relationship with Indian coffee growers. India is witnessing a dramatic evolution of the coffee consuming culture across the Indian market.
The ecosystem from the farm to the cup is evolving at a rapid pace to address this cultural shift; an evolution that is getting further catalyzed by the entry of international players like Starbucks and Lavazza; who would look to leverage India as a market as well as a sourcing base.
Estimated Domestic Consumption (From 2000)
Calendar Year |
Quantity (in MT) |
2000 |
60000 |
2001 |
64000 |
2002 |
68000 |
2003 |
70000 |
2004 |
75000 |
2005 |
80200 |
2006 |
85000 |
2007 |
90000 |
2008 |
94,400 |
2009 |
102,000 |
2010 |
108,000 |
2011 (prov.) |
115,000 |