India’s coffee sector set for expansion

Commerce Secretary Rajesh Agrawal underscored the need to broaden coffee cultivation beyond traditional regions to meet rising domestic demand. He highlighted opportunities for value addition, innovation using India’s spice heritage, and boosting “Brand India” globally.

India’s coffee cultivation, currently concentrated in Karnataka, Tamil Nadu, and Kerala, needs to expand to other regions to meet growing domestic demand, according to Commerce Secretary Mr Rajesh Agrawal.

The Commerce Secretary recently inaugurated the Coffee Experience Zone and Expo, organized by the Coffee Board to mark International Coffee Day. During the event, he stated that Indian coffee is sustainably cultivated alongside forests and emphasized that India’s coffee exports have doubled in recent years.

Speaking at the event, he highlighted the importance of diversifying coffee production across the country, noting that India’s rising middle class will soon drive a significant increase in coffee consumption.

Mr Agrawal observed that the coffee sector is undergoing value addition, with new entrepreneurs entering segments such as instant coffee and specialty brews. He emphasized that continuous innovation and product development are crucial, and India’s rich spice heritage provides unique opportunities to create distinctive coffee offerings.

While exports remain a vital component of India’s coffee industry, Mr Agrawal stressed the importance of promoting “Brand India” globally. Strengthening India’s position in the international market requires consistent efforts in quality enhancement, innovation, and value addition.

The event took place alongside the implementation of the India–EFTA Trade and Economic Partnership Agreement (TEPA), creating new avenues for Indian coffee in premium markets such as Switzerland, Norway, and Iceland. These countries, particularly Switzerland , and Norway, are high-value markets with strong demand for quality coffee.

The agreement is expected to provide Indian exporters with favorable access, enabling them to showcase India’s specialty coffees, which are shade-grown, hand-picked, and sun-dried. This presents a significant opportunity to position Indian coffee as a premium product in EFTA markets.

Collectively, EFTA member countries—Switzerland (US$ 145 million), Norway (US$ 27 million), and Iceland (US$ 3 million)—import coffee worth US$ 175 million, representing about 3% of global coffee imports. The TEPA provides a strategic framework to strengthen India’s presence in these high-value international coffee markets.