India’s coffee exports jumped 27% in the first four months of the year, driven by strong global demand for robusta and instant varieties. Shipments rose 26.6% to 174,000 metric tons between January and April, up from 137,000 metric tons a year earlier, according to the Coffee Board of India. Robusta exports climbed 36% to 85,168 metric tons, while instant coffee shipments increased to 20,332 metric tons from 17,504 metric tons. Arabica was the outlier, with exports falling 58% to 30,589 metric tons. Exporters reported higher orders from Europe and Russia, where buyers source Indian robusta for competitive pricing and consistent quality. The European Union remains the main export destination, and India shipped a total of 384,000 metric tons of coffee in 2025. Earnings rose 22.5% to $2.06 billion even as volumes slipped from the prior year, according to Economic Times. Traders cautioned that fluctuations in international prices and logistics costs could affect shipment volumes going forward.
Production is also climbing, with the Coffee Board projecting record output of 404,000 metric tons for 2025/26. This estimate includes 120,000 metric tons of arabica and 284,000 metric tons of robusta, which accounts for roughly 70% of Indian output. The board aims to scale national production to 900,000 metric tons by 2047. Smallholders account for nearly 99% of holdings and 70% of production, and government cuts to goods and services tax rates have widened opportunities for value-added exports. State-level support is growing, particularly in Kerala, where the World Bank-funded KERA project offers replanting aid and irrigation support to Wayanad growers. A 10-year plan aims to double Wayanad’s coffee production, with subsidies of up to 70% planned for replanting. In Karnataka, which accounted for about 69% of national output in fiscal 2026, the Coffee Board invited growers to apply for plantation-development subsidies for 2026/27. The broader market outlook is strong, with the industry projected to expand at a compound annual growth rate of 8.9% through 2028. Out-of-home consumption is growing even faster, compounding at 15-20% annually and heading toward $2.6-3.2 billion by 2028, according to Redseer Strategy Consultants. Premium coffee leads this shift, with its share of the out-of-home market projected to rise from 46% in 2023 to 55-60% by 2028.
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