India's coffee sector is projected to experience only marginal growth during the 2025-26 financial year as persistent climate challenges continue to hamper production potential across key growing regions.
Climate Woes Disrupt Coffee Cultivation
According to the Karnataka Planters Association (KPA), Indian coffee growing areas have faced significant environmental pressures over the past decade. Irregular rainfall patterns and extended dry summer periods have become increasingly common, creating unfavorable conditions for coffee cultivation. These climate variations have directly contributed to reduced output despite efforts to maintain production levels.
Production Challenges and Regional Impact
The changing climate patterns have particularly affected traditional coffee-growing states including Karnataka, Kerala, and Tamil Nadu. The KPA report highlights how these regions, which account for the majority of India's coffee production, have witnessed unpredictable weather conditions that disrupt flowering and berry development cycles. This has resulted in lower yields than previously anticipated, limiting the sector's growth potential.
Industry experts note that the marginal growth projection for FY26 reflects the ongoing struggle coffee growers face in adapting to these environmental changes. While technological improvements and better farming practices have helped mitigate some losses, they haven't been sufficient to overcome the fundamental challenges posed by climate variability.
Long-term Implications for Indian Coffee Industry
The persistent production challenges have broader implications for India's position in the global coffee market. As one of the world's significant coffee producers, India's ability to maintain consistent output affects both domestic consumption and export revenues. The KPA findings underscore the need for sustainable adaptation strategies to help coffee growers cope with the changing climate realities.
The report, updated on November 17, 2025, by Mahesh Kulkarni, emphasizes that without effective interventions to address these climate-related production constraints, the Indian coffee industry may continue to face similar growth limitations in the coming years.
