Karnataka offers opportunities for investments in coffee value chain

Karnataka is the largest producer accounting for about 70 per cent of the total coffee production in India.

“Karnataka is undoubtedly the Coffee capital of India, with a rich heritage of producing some of the finest coffees in the world. There is tremendous opportunity for investments across the coffee value chain- from bean to cup right from equipment companies, coffee machines, soluble coffees brands as well café chains,” said Dr S. Selvakumar, Principal Secretary of the Commerce & Industries Department, Government of Karnataka.

Speaking at the unveiling of the 5th World Coffee Conference (WCC) 2023 Logo and Theme- “Sustainability through Circular Economy and Regenerative Agriculture”, in Bengaluru recently Dr. S. Selvakumar said “This in turn leads to increased employment opportunities for our talent from farm to cafes. Therefore, we are privileged to be the Host State for this event.”

Coffee is largely produced in the southern part of India. Karnataka is the largest producer accounting for about 70 per cent of the total coffee production in India. Kerala is the second-largest producer of coffee but accounts only for about 23 per cent of the total production. Tamil Nadu is the third-largest producer with 6 per cent of India’s total coffee production. Orissa and the north-eastern areas have a smaller proportion of production, according to the IBEF report.

According to The Food and Agriculture Organization (FAO) statistics, India is the eighth largest exporter of coffee by volume. Indian coffee exports display a seasonality, with exports peaking from March to June. The country exports over 70 per cent of its production. In 2021-22, the total exports recorded a 42 per cent rise to $ 1.04 billion from the previous year. In March 2022, exports of coffee were valued at $ 114.7 million, a 22 per cent growth from February 2022. In FY23 (until December 2023), export of coffee stood at $ 525.25 million. This strong growth in the export of coffee has improved realizations for coffee growers in key states.

Image credit- iStock

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