- The soaring prices of coffee beans, driven by a global shortage in crop production, have provided a ray of hope for coffee growers in Karnataka, which is the highest coffee-growing State in India.
- Dry conditions in Vietnam and Ethiopia have impacted global production.
- Farmers grow both Robusta and Arabica varieties in India. Chikkamagaluru, Kodagu, and Hassan are the coffee production districts of Karnataka.
- Arabica is considered a more premium segment variety however recently prices of Robusta even shot up exceeding Arabica’s price level.
| The saga of Indian coffee began on a humble note, with the planting of ‘Seven seeds’ of ‘Mocha’ during 1600 AD by the legendary holy saint Baba Budan, in Baba Budan Giri hills of KarnatakaCoffee in India is grown under a canopy of thick natural shade in ecologically sensitive regions of the Western and Eastern Ghats. |
According to the Coffee Board of India, the total production of coffee in India during the 2022-23 fiscal was 3,52,000 tonnes (around 3 to 3.5% of global production), including 2,52,000 tonnes of Robusta coffee.
- The total value of India’s coffee exports has risen to ₹5,279 crore during the ongoing coffee season, from ₹3,982 crore during the same period in the earlier season.
- Coffee plantations are not covered under crop insurance.
| Coffee Board and PoliciesThe Coffee Board is a statutory organization constituted under Section (4) of the Coffee Act, 1942.It functions under the administrative control of the Ministry of Commerce and Industry, Government of India. The Board comprises 33 Members including the Chairperson. The Board is mainly focusing its activities in the areas of research, extension, development, market intelligence, external & internal promotion and welfare measures. The Board has a Central Coffee Research Institute at Balehonnur (Karnataka)Before the introduction of the free-sale quota (FSQ) for coffee in 1992, growers had to sell their entire harvest to the Coffee Board. |
The compensation paid during a drought or flood is negligible considering the investment made by the growers amidst cycles of drought, flood, and landslides.
Dig Deeper: Read about the impact of Climate Change on the global production and prices of coffee and Chocolate.
