New Delhi, Nov 29: India’s coffee industry is projected to expand at a compound annual growth rate of 8.9 per cent by 2028 and the out‑of‑home segment expected to grow at a CAGR of 15 to 20 per cent to reach $2.6 billion–$3.2 billion by 2028, an official statement said on Saturday.

The Coffee Board of India aims to scale national production to 9 lakh tonnes by 2047, reinforcing India’s emergence as a leading global coffee producer.

India currently produces about 3.6 lakh tonnes annually, with nearly 70 per cent exported to 128 countries, the statement said.

The emergence of specialty coffees such as Monsooned Malabar, Mysore Nuggets, and Koraput Coffee has strengthened India’s reputation as a producer of premium, globally competitive varieties, it said.

The success of tribal cooperatives like Tribal Development Co-operative Corporation of Odisha Ltd (TDCCOL) in Odisha has exemplified how coffee can be an instrument of socio-economic empowerment and sustainable livelihood creation, the government said.

Dominated by smallholder farmers, who account for nearly 99 per cent of holdings and 70 per cent of the country’s overall production, coffee cultivation stands as a vital pillar of India’s rural economy.

The GST rate cuts and free trade agreements, including the India–UK Comprehensive Economic and Trade Agreement (CETA), have further expanded opportunities for value-added coffee exports.

Over the past four years, exports have consistently exceeded $1 billion, reaching a record $1.8 billion in FY25, a 40 per cent increase from $1.29 billion the previous year.

Despite global geopolitical challenges, exports during April–September 2025 stood at $1.07 billion, registering a 15.5 per cent increase over the same period in 2024.

The reduction of GST from 18 per cent to 5 per cent on coffee extracts, essences is expected to lower retail prices by 11–12 per cent, encourage domestic consumption, and enhance profitability for small processors, the statement said.

(IANS)