COFFEE
India is among the top 10 coffee-producing countries, with about 3% of the global output in 2020. Indian coffee is one of the best coffees in the world due to its high quality and gets a high premium in the international markets. India produces two types of coffee: Arabica and Robusta. Arabica has high market value than Robusta coffee due to its mild aromatic flavor. Robusta coffee is mainly used in making various blends due to its strong flavor. Robusta is the majorly manufactured coffee with a share of 72% of the total production. The industry provides direct employment to more than 2 million people in India. Since coffee is mainly an export commodity for India, domestic demand and consumption do not drastically impact the prices of coffee.
Coffee is one of the world’s most popular commodities, and as of 2020, the coffee market was valued at around US$ 466 billion. India majorly exports Robusta coffee beans, a coffee bean species with low acidity and high bitterness compared to Arabica coffee. Apart from green coffee beans, preparations of coffee (31% of which is instant coffee) also have a significant share in India’s export basket. Almost one-third of the country’s total coffee exports constitute instant coffee. Over the past 10 years, until FY20, instant coffee has experienced a CAGR of 4%.
TOP EXPORT DESTINATIONS
India exports coffee to more than 50 countries around the world. Italy, Germany, Belgium, and the Russian Federation are the largest importers of coffee from India, with an average total share of about 45%. The other coffee importing countries are Libya, Poland, Jordan, Malaysia, the US, Slovenia, and Australia.
Italy, India’s largest export market, accounts for 20% of bean coffee exports. Europe, where people prefer the more bitter and stronger flavors of the Robusta blend, makes up 42% of India’s exports. Arabica coffee blend has high demand from the Middle East region, which can be traced back to the Arabia regions
Varieties of Indian coffee
Types of coffee trees there are the following varieties :
- Arabica (Arabian coffee);
- Robusta (Congolese coffee).
Coffee plantations in India is equally divided between Arabica and Robusta. However, the Robusta’s trees are given in India a greater yield — about half, so the export share of Arabica is only 30%, the remainder being Robusta.
Which is the best coffee in India? The mainly production is Arabica. But because of the tendency of these trees to diseases rust, subsequently, began to grow Robusta, imported from Java, and hybrids variaties. Robusta coffee is highly valued by Europeans for strength and exquisite flavor, especially popular India Robusta cherry. Robusta is perfect for preparing blends. And the best coffee Indian monsoon Malabar, this variety is appreciated all over the world.
Instant coffee is made exclusively from natural grains. They are roasted in a conventional technology, pulverized, and then treated with hot water to make strong coffee extract. It subsequently is sprayed to a powder.