Indian Coffee Industry

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Coffee is the second largest traded commodity in the world & is an extremely important foreign exchange earner as far as the commodities are concerned.

Brazil and Columbia are top two coffee producers in the world. They account for more than 40% of the total world produce while India’s contribution is just 4.1%.

Indian coffee is rated among the best-quality mild coffees in the international market and is exported to USA, UK Russia, Europe, Sweden, Norway, Yugoslavia, Belgium, Australia, Japan and the Gulf countries.

In India coffee cultivation is largely confined to the hilly regions of the southern states of Karnataka, Tamil Nadu and Kerala Karnataka accounts for 53 percent of the planted area (59 percent planted to Arabica, 41 percent to Robusta) while Robusta is dominant in Kerala (which has 28 percent of planted area). In Tamil Nadu however the crop is majorly of Arabica (which has 11 percent of planted area). Some 1, 33,049 small planters and 2,948 large planters cultilvate4d coffee during the year.

India produces 260mn Kgs of coffee per year. Indian coffee production has a yield of 800 – 900 kg. Per hectare, this is low compared to the world average of 1,100 kg per hectare. The area under coffee cultivation is approximately 3.1 lakh hectares.

India produces an average of nearly 2 lakh tones of coffee a year, valued at over Rs. 460 crore, mainly grown in south India.

Out of the total production only 20% is consumed in the domestics markets rest is exported. Thus India has to depend heavily on foreign markets.

Indian coffee is typically mild and not too acidic-and yet it possesses and exotic full-bodied taste and a fine aroma. The flavour is full bodies, slightly acidic and straightforward.