SDG 8: Decent Work and Economic Growth | SDG 17: Partnerships for the Goals
Institutions: Ministry of Commerce & Industry | Coffee Board of India
India’s coffee sector, dominated by nearly 99% smallholder farmers and sustaining over two million livelihoods, achieved record exports of USD 1.8 billion in FY 2024–25, reflecting an impressive 40% growth from the previous year. India ranks as the seventh-largest global coffee producer, with around 70% of its annual production of $3.6$ lakh tonnes exported to 128 countries. The country’s push for premium valuation is strongly supported by the use of Geographical Indication (GI) tags for its distinct regional varieties. The unique two-tier shade system ensures cultivation is environmentally sustainable and preserves biodiversity across the Western and Eastern Ghats.
Policy reforms and market access agreements are accelerating the sector’s growth. The recent India–UK Comprehensive Economic and Trade Agreement (CETA) and the India–EFTA Trade and Economic Partnership Agreement (TEPA) provide crucial market access, with EFTA nations offering zero-duty access for Indian coffees. Domestically, a reduction in GST (from 18% to 5%) on value-added coffee products is designed to lower retail prices and boost per capita consumption. Success stories like the Tribal Development Co-operative Corporation of Odisha Ltd. (TDCCOL) in Koraput demonstrate how community-led procurement can ensure fair pricing and sustainable livelihoods for tribal farmers.
Policy Relevance: The record export figures and the ambitious goal set by the Coffee Board to scale production to 9 lakh tonnes by 2047 underscore coffee’s role as a vital pillar of the rural economy, where FTAs and policy incentives are being strategically leveraged to drive high-value, sustainable, and inclusive agricultural growth.
What are Geographical Indication (GI) Tags in the context of Indian coffee?→ GI tags are certifications granted by the Department for Promotion of Industry and Internal Trade (DPIIT) that identify a product as originating from a specific geographical territory, giving it unique qualities or reputation, and enhancing its premium value in international trade. India holds GI tags for five regional varieties, including Coorg Arabica Coffee and Araku Valley Arabica Coffee, along with specialty types like Monsooned Malabar Robusta Coffee.
Relevant Question for Policy Stakeholders: What targeted financial and infrastructural support will the Coffee Board provide to smallholder farmers to achieve the 2047 production target of 9 lakh tonnes?
Follow the full news here: Brewing Prosperity: “India’s Coffee Story from Farm to Global Fame”