Brewing success: Karnataka coffee shipment value soars over 60%; exporters better equipped now to tap markets, says FKCCI chief

Time of India

4 hours ago

BENGALURU: Karnataka's coffee exports have brewed up an exceptional year, soaring over 60% in 2024-25 to reach over $1.1 billion, riding on multi-year-high record prices.
The surge in export value, up from $713.7 million the previous fiscal, underlines the state's continued dominance as India's premier coffee-producing state and its growing relevance in global markets.
The strong export performance has come as a shot in the arm for thousands of coffee growers in the Western Ghats region, many of whom depend on global demand. The value of Karnataka's total merchandise exports climbed 14.46% to nearly $30.5 billion in 2024-25, with engineering goods maintaining their position as the state's largest export earner.
According to Bose Mandanna N, former vice-chairman of Coffee Board of India, the surge was driven by production setbacks in Brazil, Vietnam and rising international demand.
Exporters better equipped now to tap markets, says FKCCI chief
Brazil and Vietnam are among world's biggest coffee exporters. "We've capitalised on that demand," he said, noting that India's low domestic consumption makes exports essential.
Engineering exports surged 43.2% to reach more than $12 billion, up from $8.4 billion in the previous year. This performance reflects Karnataka's growing manufacturing capabilities and its emergence as a key industrial hub for sectors ranging from aerospace to automotive components.
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Other standout performers included spices, which saw exports jump 31.4% to $173.5 million, and chemicals and allied products, which grew 17.4% to $176.8 million. Plastic goods exports also demonstrated strong momentum with a 16.25% increase to $283.92 million.
FKCCI president Balakrishna MG, said that exporters are "now more informed" and better equipped to tap specific markets. "To our surprise, coffee exports have gone up significantly," he noted, adding that a recent visit by an Omani delegation signalled new market interest.
The pharmaceutical and cosmetics sector, a traditional strength for Karnataka, recorded steady growth of 8.8% to reach $2.8 billion in exports.
However, not all sectors experienced growth. Petroleum exports declined 3.3% to $5.5 billion, whilst the automobile sector saw a 5.7% drop to $1.1 billion. Agricultural and processed food exports also fell 5.4% to around $1 billion.
TV Mohandas Pai, chairman, Aavin Capital Funds, emphasised the need for targeted infrastructure investment to sustain and scale export growth.
"We can grow agricultural exports significantly but we need better storage, reliable transport, and proper grading and marketing support."
While Karnataka's merchandise exports showed robust growth, the state's performance varied compared to other major exporting states. Tamil Nadu led with 19.5% growth, whilst traditional export powerhouses Gujarat and Maharashtra saw declines of 13.4% and 2%, respectively.
Despite fluctuations in some commodities like cashew and silk, Pai said the overall outlook remains positive. "Coffee is doing very well - not necessarily due to volume, but because prices have shot up due to a global shortage."