Admin Team
28 Mar

COFFEE 

Key Facts (Current Affairs)

  • India is the 7th largest coffee producer, contributing ~3.5% of global output
  • Annual production: ~3.6 lakh tonnes
  • ~70% exported to 128 countries
  • Karnataka contributes ~70% of total production

Types of Coffee (Static Concept)

Arabica Coffee

  • Milder, sweeter, more complex flavour with higher acidity
  • Considered higher quality → commands higher market price
  • Lower caffeine content: ~1.2–1.5%
  • Brazil is the largest producer globally

Robusta Coffee

  • Stronger, more bitter taste
  • Higher caffeine content: ~2.2–2.7% (almost double of Arabica)
  • India is a major producer of Robusta coffee

GI Tagged Coffees (Static)

  • Coorg Arabica
  • Wayanad Robusta
  • Chikmagalur Arabica
  • Araku Valley Arabica
  • Bababudangiris Arabica

Export Profile (Current Affairs)

  • 5th largest coffee exporter globally
  • Exports crossed USD 1.8 billion (FY 2024–25)
  • 38% share in value-added products (instant & roasted coffee)

Top Export Destinations:

  • Italy, Germany, Belgium
  • Russia, UAE

Policy & Trade Reforms (Current Affairs)

GST Rationalisation

  • GST reduced from 18% to 5%

Trade Agreements

  • India–UK CETA
    • Duty-free access for value-added coffee
    • Enhances competitiveness in UK market
  • India–EFTA TEPA (2024)
    • Zero duty access in Switzerland, Norway, Iceland
    • Boosts premium coffee exports

Institutional Framework (Static)

Coffee Board of India

  • Established: 1942 (Coffee Act VII, 1942)
  • Ministry: Ministry of Commerce & Industry

Central Coffee Research Institute (CCRI)

  • Established: 1925
  • Location: Balehonnur, Chikmagalur (Karnataka)

Tribal Development Co-operative Corporation of Odisha Ltd. (TDCCOL)

  • Established: 1967
  • Role: Promotion of Koraput Coffee

Market Trends & Future Outlook (Current Affairs)

  • Coffee market growth: ~8.9% CAGR by 2028
  • Out-of-home segment: 15–20% CAGR
  • Production target: 9 lakh tonnes by 2047

Summary Insight

India’s coffee sector is characterized by Robusta dominance domestically, premium Arabica positioning globally, and strong export orientation, supported by policy reforms and institutional mechanisms.

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