Russia has overtaken Germany to become the second-largest buyer of Indian coffee, underscoring a significant shift in India’s export markets. The development is notable given that Russia, a major supplier of crude oil to India, has sharply increased its imports of Indian coffee over the past year.
In 2025, India’s total coffee exports surged by 22 per cent to cross the $ 200 crore mark for the first time. According to data from the Coffee Board, export earnings rose from $167.9 billion in 2024 to $205.8 billion in 2025. The average export price per tonne also climbed significantly, from Rs 3.48 lakh to Rs 4.65 lakh. As a result, export revenues in rupee terms increased by 27 per cent, reaching a total of Rs 17,911 crore, even as overall export volumes declined.
The total quantity of coffee exported last year fell by 4.5 per cent to 3.48 lakh tonnes, compared with 4.02 lakh tonnes in the previous year. Within this overall decline, individual segments showed mixed trends. Exports of Arabica coffee increased by 5.5 per cent to 38,326 tonnes, while Robusta exports slipped by 1.5 per cent to 24,612 tonnes. Instant coffee performed strongly, with exports rising by 12 per cent to 46,954 tonnes, reflecting growing global demand for value-added coffee products.
Among importing countries, Italy continues to be the largest consumer of Indian coffee. Of the total exports, 60,668 tonnes were shipped to Italy. Russia moved into second place with imports of 31,505 tonnes, while Germany, which previously held the second position, slipped to third with 28,840 tonnes. Exports to Germany fell sharply by 32 per cent, whereas shipments to Russia increased by 20 per cent. The United Arab Emirates and Belgium followed as the next major destinations. India is currently the seventh-largest producer of coffee globally and the fifth-largest exporter. The European Union remains the principal market for Indian coffee, accounting for a substantial share of total exports.
Within the country, Karnataka remains the cradle of Indian coffee, contributing around 70 per cent of total production. Nearly 45 per cent of this output comes from Kodagu district, while 20–25 per cent is produced in Chikkamagaluru. Kerala ranks second with a 20 per cent share, with Idukki and Wayanad serving as the main production centres. Kerala cultivates both Robusta and Arabica varieties. Coffee is also grown in Tamil Nadu’s Nilgiris, Andhra Pradesh, Odisha, Maharashtra, Nagaland and Meghalaya.
India is also eyeing a larger presence in the United States market. The imposition of a 50 per cent tariff on Brazilian coffee by US President Donald Trump had driven up prices and reduced imports from Brazil, the US’s largest supplier. While this created an opportunity for Indian exporters. Currently, only about 8,700 tonnes of coffee are exported from India to the US. However, exporters believe that if an India-US trade deal materialises and tariffs are reduced to 15–20 per cent, shipments to the US could rise significantly.
