Coffee, a roasted bean from a particular plant species, is one of the most popular drinks in the world. Indian coffee is regarded as the finest coffee produced anywhere in the world in the shade rather than in direct sunlight. The nation has approximately 250,000 coffee growers, with 98% of them being small growers. In 2009, Indian coffee accounted for only 4.5% of world production. The Coffee Cultivation Project seeks to encourage coffee cultivation in India by providing small and medium-scale coffee growers with training, guidance, and support.
The program seeks to increase coffee production and exports from India, enhancing the living conditions of coffee farmers and advancing the country’s economy. Nearly 80% of the coffee produced in India is shipped, with important markets for this product including the United States, United Kingdom, Japan, Greece, the Netherlands, and France. Other important export markets include Germany, Russia, Spain, Belgium, Slovenia, and Belgium.
29% of all exports come from Italy, with most cargoes traveling through the Suez Canal. Coffee is grown in major regions of India, with Tamil Nadu, Karnataka, and Kerala as the traditional coffee growing region, followed by the non-traditional areas of Andhra Pradesh and Odisha on the eastern coast of the country, and the states of Mizoram, Tripura, Nagaland, Assam, Manipur, Meghalaya, and Arunachal Pradesh of North-eastern India.
The coffee business is segmented by product type, channel of distribution, and region. Whole-bean, ground coffee, instant coffee, and coffee capsules are the four divisions of the coffee business. The South Indian highland states of Karnataka, Kerala, and Tamil Nadu produce most of the country’s coffee, accounting for 71%, 21%, and 5% of the nation’s total production, respectively. (8,200 tonnes).
1 Acre Coffee Cultivation Project Report in India
Market and Demand for Coffee Cultivation
Globally, the coffee industry is a quickly expanding market. Due to its ability to boost metabolism, enhance brain function, and improve liver health, instant coffee has acquired immense popularity, particularly among the working population worldwide. In developed economies, consumers gravitate toward premium coffee options for quality and taste, resulting in a shift in market dynamics.
From 2021 to 2025, the world coffee market will rise by 7.60% to 10,692,99 Crores. Out-of-home coffee consumption, urbanization, e-commerce retail sales, income, specialty coffee demand, and green coffee consumption in emerging countries are expected to drive the market. Coffee consumption is unlikely to reach new heights.
Still, it will remain a popular dairy beverage in consumers’ diets worldwide. Government subsidies designed to encourage the growth of revenue crops are likely to benefit coffee production. The market is also driven by the rising demand for certified coffee products, the consumer adoption of single-serve coffee brew systems, and the constant innovation of the market’s leading players.
Best Coffee High Yield Variety for Coffee Cultivation
- India grows several high-yielding coffee types that are famous for their quality.
- Robusta coffee plants produce high yields in India. Its pest- and disease-resistant Yield is good. Robusta coffee plants can yield 2,500 kilograms per hectare, more than any other coffee variety.
- Arabica coffee is another high-yielding Indian coffee shrub. Superior quality, complex flavor, and better market worth distinguish this variety. Indian coffee growers earn from Arabica coffee’s 1,500 kilograms per hectare yield.
- Sln 9, Cauvery, and Chandragiri are new high-yielding coffee types promoted by the Indian government.
- By selecting the right variety and implementing good agricultural practices, coffee growers can achieve high yields and profitability in coffee cultivation.
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Cost of Cultivation for 1 Acre Coffee Cultivation in India
In India, for 1 acre of coffee, farming costs include plant material, irrigation, labor, fertilizer, shade tree material, and farm fencing.
- Plant material cost: 1000 coffee bushes for 1-acre cost Rs 15,000 at Rs 15 each.
- Irrigation: Water source, irrigation system, and climate impact irrigation cost. To water 1 acre of coffee in India, a sprinkler costs Rs 20,000.
- Labor cost: Land preparation, sowing coffee and shade trees, pruning, harvesting, and care. India’s coffee farming labor costs Rs 25,000–30,000.
- Shade tree material cost: Shade trees regulate temperature, rainfall, and coffee plant growth. Shade trees cost Rs 5,500 and supply Rs 4,000 per Indian coffee acre.
- Coffee trees are protected by farm fencing. Farm netting costs 20,000-45,000.
- Coffee fertilizer costs depend on the type, quantity, soil fertility, etc. Indian coffee farmers spend Rs 15,000–26,000 per acre on organic and inorganic nutrients.
- Farm management, pest control, and other fees are unnoticed. India’s coffee farming costs Rs 7,500 in miscellaneous costs.
- Plant material cost: Rs 15,000
- Irrigation cost: Rs 20,000
- Labor cost: Rs 25,000-30,000
- Shade tree material cost: Rs 5,500 + Rs 4,000 = Rs 9,500
- Farm fencing cost: Rs 20,000-45,000 (depending on the material used)
- Fertilizer cost: Rs 15,000-26,000
- Miscellaneous cost: Rs 7,500
Thus, based on labor, farm fencing, and fertilizer costs, 1-acre coffee farming in India costs Rs 92,500 to Rs 128,000. These estimates are approximate and may vary based on each farm.
Total Returns from 1 Acre Coffee Cultivation
- Indian beans cost Rs 550, Rs 600, or more per kg. (depends on current market)
- Variety-dependent beans yield 1000–1600 kg per acre. (Can vary)
- If the Yield of coffee beans per acre is 1400 kg and the current market price of 1 kg of coffee beans in India is Rs 560,
The total revenue generated from 1 acre of coffee farming can be calculated as follows:
- Total revenue = Yield per acre x Price per kg
- Total revenue = 1400 kg x Rs 560/kg
- Total revenue = Rs 7,84,000
The total revenue generated from 1 acre of coffee farming in India would be Rs 7,84,000
Net Profit from 1 Acre Coffee Cultivation
- The total cost of 1-acre coffee cultivation is Rs 110,000
- Profit range = Total revenue – Total cost
- Profit range = Rs 7,84,000 – Rs 1,10,000
- Profit range = Rs 6,74,000
India’s 1-acre coffee farming Profit is Rs 6,24,000. These approximate figures may vary due to weather, market fluctuations, labor costs, etc.
Note: Coffee trees start producing beans after three years. The coffee farming project report assumes the current market price, which may change depending on the region and market price.
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Conclusion
The production cost of 1-acre coffee cultivation in India ranges from Rs 92,500 to Rs 1,28,000. With a yield of 1400 kg of coffee beans for Rs 560 per kg, the net profit can range from Rs 4,56,000 to Rs 6,91,000.
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Great Article.