India’s coffee exports set to cross $2 billion mark in FY26

India’s coffee exports are likely to cross the $2 billion mark in value terms in the fiscal year ending March 31, 2026, reflecting sustained demand in global markets even amid geopolitical uncertainties.Green bean exports touched $1.72 billion by the beginning of February, and with around six weeks remaining in the current fiscal, shipments are expected to surpass last year’s level, a senior Coffee Board of India official said.
In the fiscal year ended March 2025, India’s coffee exports stood at $1.8 billion, registering a sharp 40% growth over the previous year’s $1.29 billion. “Over the past four years, India’s coffee exports have consistently exceeded the $1 billion mark,” Kurma Rao M, CEO and Secretary, Coffee Board of India, said on Monday.Coffee cultivation in India is largely concentrated in the southern states of Karnataka, Kerala and Tamil Nadu, which together account for about 96% of the country’s total production. Karnataka alone contributes 72% of India’s coffee output, estimated at 2,80,275 metric tonnes as per the post-blossom estimate for 2025–26.During 2024–25, India produced 3.63 lakh metric tonnes of coffee, of which nearly 70% was exported. Domestic consumption stood at around 95,000 metric tonnes in 2023, Rao said.Italy remains the largest export destination for Indian coffee, accounting for 18.09% of total exports, followed by Germany (11.01%), Belgium (7.47%), the Russian Federation (5.28%) and the United Arab Emirates (5.09%).
Export prospects are expected to receive a further boost from the recently concluded India–UK Comprehensive Economic and Trade Agreement (CETA), which provides tariff advantages for Indian value-added coffee products, particularly instant coffee. The UK, which currently accounts for about 1.7% of India’s coffee exports, will now allow duty-free access for roast and ground coffee as well as instant coffee, enhancing India’s competitiveness against suppliers from Germany, Spain and the Netherlands.According to information, the agreement lays a strong foundation for scaling up exports of value-added coffee to the UK market. India is also a major hub for instant coffee production, with value-added products accounting for nearly 38% of total coffee exports.