Andhra Pradesh coffee exports touch $ 142million

Vijayawada: Andhra Pradesh, the country's second-largest exporter of coffee, exported coffee worth $142 million in the financial year 2020-21.

The State government is encouraging the coffee production in Araku valley and other places during the past few years. The share of Andhra Pradesh accounts for more than 50 percent of India's instant coffee exports. The State possesses many manufacturing plants that process green coffee beans to instant coffee, which commands a 31 percent share in India's coffee exports basket.

Drip Capital Inc, a global trade finance company, recently released a report examining the coffee trade across different regions of India. From analysing proprietary and publicly available data, getting insights from coffee exporters in the country, to understanding several emerging market trends brewing in the industry, the report speaks in-depth about the dynamics of the coffee sector.

The coffee exports from this region have been growing at a 3 percent over the past five years. The largest and the most famous coffee-growing region in Andhra Pradesh is Araku valley plantations.

According to the Coffee Board of India, on average, 3100 MT of (mainly) Arabica coffee is harvested from this region. Exports of instant coffee are rising from Andhra Pradesh due to increased export value realisation for the commodity.

Pushkar Mukewar, Co-Founder and CEO, Drip Capital, said, "as a commodity, instant coffee enjoys the product feature of convenience- a quality in high demand and vital to today's global, fast-paced life. Hence, Indian exporters must stay abreast of developing trends in the instant coffee exports market. Also, to boost India's overall coffee exports, many other States could benefit from mimicking Andhra Pradesh by setting up several coffee processing plants."