INDIA'S COFFEE INDUSTRY

OVERVIEW

The world coffee production in the coffee year 2009-10 is estimated to be 123.6 million bags signifying a decline of over 4.5 million bags in the CY 2008-09 when production totaled at 128.2 million bags. This is revealed in a report of International Coffee Organization market report for January 2010 excluding additional information that has to come from Colombia and Vietnam. The ICO report also  states of a significant fall in coffee production in Brazil - by about 14 percent besides production shortfall apprehended in countries like Cote d'Ivoire; Tanzania, Uganda, Papua New Guinea, Vietnam, Mexico, El Salvador, Equador and Peru. The Colombian production is unlikely to register worth mentioning increase. The over all world supply of coffee is likely to be tight in 2010 due to low level of opening stocks as well.

In the export front calendar 2009 closed with a decline of 3 percent at 94.7 million bags from 97.7 million bags in 2008. World consumption however is provisionally estimated at 130 million bags in 2008 from 128 million bags in 2007. Domestic consumption in exporting countries was up at 36.7 million bags compared with 35.4 million bags in calendar 2007. The Brazilian Coffee Industry Association expects 4.15 percent increase in world consumption of coffee.
 

Total world exports of coffee (2008 & 2009)
	2008	2009	% Change
Colombian Milds	12219	9278	-24.07
Other Milds	22524	20861	-7.38
Brazilian Naturals	28724	30033	4.56
Robustas	34199	34518	0.93
Total	97666	94690	-3.05
Source:  International Coffee Organization, Coffee Market report, January , 2010

Indian Coffee Board puts country's coffee production at 2.90 tonne (Post monsoon estimation) and 3.06 tonne (Post Blossom Estimation) respectively. For the present crop year beginning October, the board has estimated an output of  arabica at 101,525 tonnes and robusta 204,755 tonnes. Karnataka leads the country with 2.05 tonne (Post monsoon estimation) and 2.21 tonne (Post Blossom Estimation) production followed by Kerala and Tamil Nadu. According to ICO estimate, India produced over 3.1 million bags of 60 kgs each in 2009 compared with 3.3 million bags in 2007.Country's coffee exports during fiscal 2008-09 stood at 1.96 lakh tonne signifying marked decline from 2.18 lakh tonne in 2007-08.

India's Coffee Production (In tonne)

India accounts for about 4.5 percent of world coffee production and the industry provides employment to 6 lakh people. Among the coffee growing states, Karnataka accounts for 70 percent of country's total coffee production followed by Kerala (22 percent) and Tamil Nadu (7 percent). Europe accounts for about 70 percent of India's total coffee exports. Of this again, 70 percent is shipped via Suez Canal. Major Indian coffee importing countries include Italy, Germany, Russian federation, Spain, Belgium, Slovenia, US, Japan, Greece, Netherlands and France.

^{With a view to expand coffee cultivation, Coffee Board has been implementing developmental programmes for coffee development in North Eastern Region and Non Traditional areas. During 11th Five Year Plan, Coffee Board has proposed to support coffee expansion programme taken up by the Integrated Tribal Development Agency on 24000 ha. area in Andhra Pradesh and on 850 ha. area in North Eastern Region, which will facilitate export of coffee. As a part of export promotion, the Coffees from different regions with their logos are promoted including the coffee from the areas under Integrated Tribal Development Agency, as ‘Araku’ Coffee. Constant endeavour is being made by the Government to help the coffee growers to ease their bank debts.}

Updated on March 15, 2010

Overview
Production of ICO's exporting member countries (1996-2002)
Exports by ICO member countries (2006-2007)
Domestic consumption in selected coffee exporting countries
ICO's composite indicator prices (1982-2007)
India's coffee production, consumption & exports (1985-2006)
Prices paid to Arabica growers in India (1982-2003)
Prices paid to Robusta growers in India (1985-2003)
Coffee Imports by ICO's non-exporting member countries (2002-03)