Mysuru: Drip Capital, Inc, a global trade finance company, recently released a report examining the coffee trade across different regions of India.
From analyzing 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.
Being the birthplace of coffee, Karnataka dominates India’s coffee industry, accounting for 60% of exports by value in FY20. Region-wise, Coorg and Chikkamagaluru are the largest and most famous coffee-growing territories in Karnataka. In FY20, Coorg produced 107,175 MT and Chikkamagaluru harvested 68,600 MT of coffee.
The state exported US$ 443Mn coffee in FY20, and interestingly, the export number for the pandemic year reached US$ 448Mn. Karnataka’s coffee exports, it seems, were resilient, thanks to conducive weather and the resulting good output of crop, making a Y-o-Y growth of 1%.
While Covid-19 did stir things up in the sector, Drip Capital’s research shows that it accelerated the popularity of the famous Monsooned Malabar coffee. The volume of export of this variety grew at 7% CAGR in the last decade, ending FY20, and the value of exports rose at 11% CAGR for the same period.
Pushkar Mukewar, Co-Founder and CEO, Drip Capital, said, “The global appreciation for this variety of coffee in the market will help it command a higher price. Already taking advantage of the trend, certain micro coffee estates and roasters are currently trying to tap into this new opportunity on a small, experimental scale. With further aid from the Coffee Board of India and the government, Indian coffee producers could take this highly popular specialty coffee to greater heights.”
About Drip Capital: Drip Capital is a digital trade finance company based in Palo Alto, California. The company offers working capital solutions to small and medium-sized companies engaged in cross-border trade in India, Mexico, and the United States using technology and data analytics.
Since the start of operations, Drip has raised nearly $200 million through venture capital and debt. The company has raised over $45 million through investors such as Accel Partners, Sequoia Capital, Wing VC, and Y Combinator and over $150 million from family offices, HNIs, institutional investors, and wealth advisors. As of March 2021, it has funded more than $1.2 billion of international trade.