India’s Coffee Boom: How Divesh Khushalani Sees the Billion-Dollar Surge as a Game-Changer
India’s coffee industry has reached an extraordinary milestone, with exports surpassing the $1 billion mark for the first time. Between April and November FY24, coffee exports surged to $1.15 billion, a 29% increase compared to $803.8 million during the same period last year. This remarkable achievement highlights India’s evolution into a formidable global coffee exporter, challenging its traditional tea-dominated narrative.
Driving this growth is the sharp rise in Robusta coffee prices. Robusta beans, accounting for over 40% of global coffee production, saw prices soar by 63% this year due to supply constraints in countries like Brazil and Vietnam. By June, Robusta prices hit $4,667 per metric ton on the London-based ICE Futures Europe market, presenting Indian coffee exporters with a unique opportunity.
Insights from Divesh Khushalani on India’s Coffee Transformation
To explore the significance of this milestone, QahwaWorld.com spoke with Mr. Divesh Khushalani, Co-Founder and Managing Director of Kranti Coffee. Sharing his insights, Khushalani described this moment as transformative for Indian coffee.
“This is one of the most challenging questions when you serve a cup of coffee from India,” said Khushalani. “Imagine the possibilities. With an open system, minimal bureaucracy, and progressive producers leading the way, the sky is truly the limit. India’s coffee story is no longer bound by traditional expectations—it’s a revolution in the making.”
Khushalani highlighted a key shift in perceptions: “Gone are the days when better-quality coffees were reserved solely for exports. India has shattered the myth that premium spices, tea, and specialty coffees were confined to being export commodities. Brewing Indian coffees today not only surprises drinkers but also satisfies coffee lovers worldwide.”
He also praised the leadership of the Coffee Board of India, led by Secretary Dr. K.G. Jagadeesha IAS. “Through rigorous training programs and streamlined export facilitation, India has achieved remarkable milestones in the global coffee trade. The dedication of our producers is extraordinary and deserves recognition.”
Resilient Production Amid Global Challenges
India’s coffee-growing regions—Karnataka, Kerala, and Tamil Nadu—have demonstrated remarkable resilience, maintaining stable production levels despite global challenges. Karnataka, the backbone of Indian coffee production, contributed over 248,000 metric tons in 2022-23, ensuring steady supply amidst rising global demand.
European buyers, preparing for the European Union’s Deforestation Regulation (EUDR) set to take effect in December, also boosted demand for Indian coffee. The EUDR aims to curb imports linked to deforestation, presenting both challenges and opportunities for Indian exporters.
Opportunities and Challenges in the Domestic and Global Markets
Khushalani acknowledged the dual challenges of meeting growing domestic and global demand. “The rapidly growing local appetite for coffee within India—rising at double-digit rates annually—poses supply constraints,” he explained.
“But let’s accept the fact: Indian coffees are making a mark globally. With a progressive producer mindset and an unwavering commitment to quality, India is poised to serve the global coffee market like never before,” Khushalani added.
Looking Ahead: A Promising Future for Indian Coffee
India’s diverse coffee regions and versatile cup profiles are increasingly filling gaps traditionally dominated by Brazil, Ethiopia, and Colombia. With its commitment to excellence and innovation, the country is carving a space for itself in both specialty and commercial coffee production.
Khushalani concluded with optimism: “India is here to serve and supply. With its diversity, innovation, and commitment to quality, the future of Indian coffee on the global stage is incredibly bright.”
India’s coffee boom, coupled with strategic leadership and resilient producers, signals a promising future for the nation’s coffee industry. As it continues to redefine global trade dynamics, Indian coffee is well on its way to becoming a cornerstone of the international market.
