Coffee Cultivation in India

Baba Budan’s seven beans

Legend credits Baba Budan, a 17th-century Sufi saint, with smuggling seven coffee beans out of Yemen. He planted them in the Chikmagalur hills of Karnataka, and that planting became India’s coffee belt.

In 1942, the government set up the Coffee Board of India through the Coffee Act. Falling prices and disease had hurt the industry, and the board was built to stabilise it. That pattern repeats across commodity boards: they usually appear after a crisis, not before one.

Two beans, one dominant state

India is the world’s seventh-largest coffee producer. It grows two main kinds: Robusta, which makes up most of the crop, and Arabica, grown in smaller amounts at higher altitude.

• The coffee belt runs through the Western Ghats, across Karnataka, Kerala, and Tamil Nadu.
• Karnataka alone grows about 71% of India’s coffee.

Why “shade-grown” matters

Most Indian coffee is grown under a forest canopy, not in open sun. That is unusual. Big producers like Brazil and Vietnam mostly use full-sun farms instead. Full sun gives a bigger crop, but keeps less tree cover. India chose to trade some yield for more trees.

Where Indian coffee actually goes

Most Indian coffee leaves the country unroasted, as raw beans. Roasted and instant coffee exports are growing too, but are still smaller. Europe buys 45-70% of India’s coffee exports, plus buyers like Italy, Germany, and Turkey.

Shade-grown farming has a side benefit too. It lets coffee share land with old trees instead of clearing them, which keeps more of the belt’s wildlife around.

The Integrated Coffee Development Project

The Integrated Coffee Development Project, worth ₹950 crore, funds small and tribal growers directly. It covers replanting old trees, irrigation, curing yards, and processing equipment.

Seventh in the world, despite the export story

India is only the world’s seventh-largest coffee producer. It sits well behind Brazil and Vietnam, despite its export success. A growing export business does not mean a top global production rank.

A record high, then a sharp fall

Arabica hit a record $3.48 per pound in January 2025, a jump of 79%. Then prices fell sharply through late 2025, dropping 15-17% from their May highs. Brazil, Vietnam, and Indonesia had posted bumper crops.

The World Bank expects Arabica to fall a further 13% in 2026, and Robusta to ease about 2%, after both rose sharply through 2025.

Even with that swing, India’s own numbers kept climbing. Exports crossed $2 billion in FY2025-26 and reached over 140 countries. That is up roughly 25-26% from the year before. Export prices for GI-registered Arabica and Robusta rose 34.36% and 29.73%. That is a real premium for India’s protected coffee.

What the new EU rules require

New EU rules require exporters to prove their coffee was not grown on recently cut forest land. India is marked “low risk” under the EU’s own system. The Coffee Board’s India Coffee App lets growers log their farm’s location to meet this rule. But many growers have not finished signing up yet.

How climate change is hitting the belt

• Extreme-heat days have risen sharply across India’s coffee belt. Karnataka now gets about 32 more harmful-heat days a year, and Kerala gets 65 more, than in a world without climate change.
• Heat above 30°C cuts both yield and bean quality. It hurts heat-sensitive Arabica the most, even as official numbers still point to a record harvest.
• Grower groups in Karnataka and Kerala doubt that record-harvest forecast. They point to old trees, pests, and heavy reliance on rain.