Horticulture, Floriculture, Commercial crops, Bamboo Production – MIDH, NFSM-CC, etc.

India’s Coffee Export surpasses USD 1 Billion for first time

Prelims Only | Economics | Mains Paper 3: Major Crops & Cropping Patterns
Note4Students

From UPSC perspective, the following things are important :

Prelims level: Coffee cultivation in India

Why in the News?

India’s coffee exports in the 2024 calendar year witnessed a significant growth of 45% in dollar terms, reaching an all-time high of $1.684 billion, compared to $1.160 billion in 2023.

Coffee Production in India

  • Coffee was introduced to India in 1600s by Baba Budan, who planted seven seeds in Chikmagalur, Karnataka.
  • Karnataka is the largest producer, contributing 70% of the total, followed by Kerala and Tamil Nadu.
  • Over 70% of India’s coffee production is exported, making India the 8th largest coffee exporter globally.
  • Coffee thrives in tropical to semi-tropical climates with temperatures of 16°–28°C and annual rainfall of 150–250 cm.
  • The plant grows best on well-drained slopes with laterite soils, especially in Karnataka.
  • Major varieties cultivated include Arabica, Robusta, and Liberica. Arabica has a higher market value due to its mild aromatic flavor.
  • The Coffee Board of India plays a crucial role in promoting the Indian coffee industry by focusing on export promotion, domestic market development, and improving production and quality standards.

Note:

  • The Coffee Board of India was established in 1942 under the Ministry of Commerce and Industry.
  • It is headquartered in Bangalore and consists of 33 members, including a Chairman appointed by the Government of India.
  • Initially, it managed the pooled supply and marketing of coffee until 1995. After economic liberalization, coffee marketing became a private-sector activity.

Reasons for growth

  • Coffee prices reached record highs in 2024 due to poor weather conditions in major coffee-producing nations like Brazil and Vietnam, leading to increased global demand for Indian coffee.
  • The anticipated rollout of European Union Deforestation Regulation (EUDR) norms prompted advance purchases by European buyers, including roasters and traders, boosting demand for Indian coffee exports.
  • A 37% increase in unit value per tonne enhanced the overall export revenue, driven by higher global prices and better quality of Indian coffee.
  • Efforts to strengthen relationships with traditional buyers (e.g., Italy, Germany) while expanding to emerging markets (e.g., UAE) helped diversify export destinations and increase overall volumes.

PYQ:

[2010] Though coffee and tea both are cultivated on hill slopes, there is some difference between them regarding their cultivation. In this context, consider the following statements:

  1. Coffee plant requires a hot and humid climate of tropical areas whereas tea can be cultivated in both tropical and subtropical areas.
  2. Coffee is propagated by seeds but tea is propagated by stem cuttings only.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

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