Coffee exports from India have risen on increasing demand in the foreign markets, giving
the coffee industry in the country, the sixth largest producer in the world, much reasons to cheer.
A staggering 60 per cent growth has been registered in coffee exports from India to various foreign countries, especially European nations in the period between 2009 October to 2010 September. A total of 271859 ton coffee has been exported to various foreign markets during the season.
The earning from coffee exports has gone up from Rs 1954 crore 2008-09 to Rs 2787 crores, Coffee Board figures indicated.
The Indian coffee sector was running through rough waters for some decades due to lower demand and falling prices of coffee products in international markets.
Even the traditional buyers had not shown much interest in the Indian brand during the period. The entry of new competitors also affected the Indian coffee sector.
However, the traditional coffee importers like Italy and Germany have begun to show a renewed interest in Indian products, improving the country's position among countries that export coffee.
Export rates to Germany and Italy have registered an increase of 20 and 21 per cent respectively, sources said.
Lower production in other coffee producing nations has also contributed to the growth of the Indian sector, they said.
To tap the positive trend, Indian Coffee Board and other exporting agencies are presently working on various projects targeting the markets in US and Japan-two major coffee importing nations.
Besides the demand in foreign countries, Indian coffee is is showing a steady increase in demand in the domestic market also. A growth of 150 per cent has been recorded in the last decade in the case of domestic coffee consumption, Board
officials said.
Favourable climate and high coffee consumption rate among youngsters are also giving fresh hopes to Indian coffee sector.