Explained: India’s Coffee Trade Stays Strong Despite US Tariff Hike — What’s Shielding It?

India’s coffee exports have rebounded strongly in 2024–25 despite earlier U.S. trade tariffs. The Kodagu Express explains how and why.

Is the US import tax hurting Indian coffee growers?

Not significantly. The steep 26% import duty imposed by US President Donald Trump as part of his ‘Liberation Day’ trade policy is unlikely to disrupt India’s coffee industry. Karnataka — the country’s top coffee-producing state — remains firmly in the lead, and most Indian exporters continue to focus on markets beyond the US, particularly Europe.

How are Indian coffee exports faring this year?

India’s coffee export performance in the financial year 2024–25 has shown a significant rebound, even in the wake of trade disruptions like the U.S. tariffs imposed under Donald Trump’s administration. Data from the Coffee Board of India indicates that both the quantity and value of exports have risen compared to the previous financial year.

Between April 2024 and March 2025, India exported 389,624 metric tonnes (MT) of coffee, earning ₹15,449.25 crore in foreign exchange. This marks a notable rise from ₹13,145.27 crore earned in FY 2023–24.

Is the US a big market for Indian coffee?

Not really. “The US accounts for just about 1% of India’s coffee exports, mostly as Robusta instant coffee,” said Dr Babu Reddy, deputy director (research), Market Intelligence Unit, Coffee Board told TOI. He noted that the American market is largely dependent on Latin American countries such as Brazil, Colombia, and Honduras. Vietnam, a major competitor in Robusta exports, now faces a 46% duty—potentially shifting the market in favour of Indian growers.

Which countries import the most Indian coffee?

Contrary to popular belief, the U.S. isn’t India’s largest coffee importer. As per the Coffee Board’s export data (Jan–Apr 2025), the top destinations were:

The U.S. ranked tenth among importing nations, with just 4,687.73 MT of Indian coffee.

Could the new tariffs actually help Indian exporters?

Possibly. A Nanda Belliappa, chairman of the Coorg Planters Association, told TOI, “This could open up opportunities in other markets as exporters redirect consignments.” He added that any global price changes would more likely be driven by demand and supply factors rather than just US policy.

What’s happening in the European market?

European countries like Italy, Belgium, and the UK remain major consumers of Indian coffee, especially unroasted Arabica and Robusta beans. Exporters say stockpiling by European buyers—anticipating new deforestation compliance laws—along with rising Robusta prices, will continue to push demand for Indian beans.

Is domestic consumption also increasing?

Yes, internal consumption has touched over one lakh tonnes this year, but exports still dominate. “Coffee from Karnataka is known for its high quality,” said an exporter from Mudigere, Chikkamagaluru to TOI. “As long as we meet European quality and environmental norms, Indian coffee exports will thrive.”

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