COFFEE MARKET IN INDIA

Indian Coffee

The traditional coffee producing areas in India are: 

• Karnataka – Chikmagalur, Coorg including Mysore, Hassan districts
• Tami Nadu – Pulneys, Nilgiris, Shevroys (Salem), Anamalais (Coimbatore)
• Kerala – Wyanad, Travancore, Nelliampathies

The non-traditional coffee producing regions in India are: -

• Andhra Pradesh
• Orissa
• Assam
• Manipur
• Meghalaya
• Mizoram
• Tripura
• Nagaland
• Arunachal Pradesh

  India stands at the 6th position in the list of coffee producing countries. The production of coffee in India fell drastically in 2002-03 like in the other countries of the world. But it has started recovering from that downfall and the production increased slightly in 2003-04. The areas having a good altitude are indulged in cultivating coffea arabica and the low-lying areas having a hot climate cultivate coffea robusta. Robusta coffee production contributes to about 62-65% of the total coffee production whereas Arabica contributes to 35-38%. Karnataka has the maximum cultivated area i.e. 53%.

Though India just contributes a mere 4% share in the world’s coffee contribution but still Indian coffee is considered to be one of the most stimulating coffee in the world. India is indulged in producing coffee that is mild in nature i.e. having a low acid content. Most of the coffee grown in India is cultivated under shade. India’s production stands at around 3 lakh tons annually and around 70% of the total production of coffee is exported i.e. around 210000 tons. The countries, which import coffee from India, are: -

• Italy
• Russia
• Germany
• Belgium
• Spain
• Slovenia
• France
• Finland
• Algeria

India produces some specialty types of coffee also namely

1. Monsooned coffee – This coffee is very much popular in the world. Earlier when there were less resources available for transportation, the coffee from India, in transit to Europe, faced humidity and that turned the color of the coffee to pale yellow and the taste also. This was the birth of a new variety i.e. the Monsooned coffee.Even today, through out the months of monsoon, the coffee is left in an open warehouse to make it ‘monsooned’.
2. Mysore nuggets extra bold – This type of coffee have extra large beans, greenish in color and have quite strong fragrance. Unlike the other varieties produced in India, mysore nuggets has a good acid content.
3. Robusta Kaapi Royale - Robusta Kaapi Royale is a smooth, less acidic coffee made from Robusta Parchment AB class of coffee. The coffee beans are round in shape and grayish in color.

The Indian consumption of coffee is also increasing with time. India consumes around 30% of the total quantity produced. Before liberalization, the Coffee Board controlled coffee marketing in India but after liberalization that interference of the board was completely removed.

Coffee traded at the Indian commodity exchanges like  ·         National Commodity & Derivatives Exchange ltd ·         National Multi Commodity Exchange of India ltd

Future contract specifications of coffee in various commodity exchanges