Andhra Pradesh Steps Up Coffee Production And Exports, Two More Major Companies Set To Enter State

Amaravati: Andhra Pradesh is seeking to strengthen its position in India’s coffee industry by expanding cultivation, processing, and exports. The state government is encouraging the sector by offering incentives to coffee-processing companies and promoting coffee cafés in major cities, towns and along national and state highways.

Two more leading coffee companies are also expected to enter Andhra Pradesh and are likely to sign agreements with the state government soon. Andhra Pradesh cultivates the Arabica variety, with an annual production of around 15,000 tonnes annually.

India is the world's seventh-largest coffee-producing country, with nearly 70% of its coffee production exported to various international markets. Southern states account for approximately 73% of India's total domestic coffee consumption.

From Andhra, Araku Coffee has gained international recognition and is being positioned as a premium coffee brand. Tribal farmers in the region are adopting natural and organic farming practices, further enhancing the appeal of the produce.

In Alluri Sitharama Raju district, around 1.5 lakh tribal farmers are cultivating coffee across approximately 2.45 lakh acres. The state government has also initiated measures to expand coffee cultivation by another one lakh acres.

The government is providing special incentives for the development of coffee-processing clusters under the Prime Minister's Formalisation of Micro Food Processing Enterprises (PMFME) Scheme.

So far, 1,375 coffee-processing units have been established in Alluri Sitharama Raju district at a total investment of around Rs 11.98 crore, according to officials.

Andhra Pradesh produces around 23,000 tonnes of coffee powder every year, including freeze-dried instant coffee. Continental Coffee produces around 10,000 tonnes, while Indus Coffee has an annual production capacity of approximately 8,000 tonnes. Vaihan Coffee produces around 3,000 tonnes, Lavazza around 1,000 tonnes, and other companies account for another 1,000 tonnes.

To meet processing requirements, Arabica and Robusta coffee beans are also imported from different countries.

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