A STUDY ON LOCAL AND INTERNATIONAL FACTORS INFLUENCING THE PRODUCTION AND EXPORT OF COFFEE FROM KARNATAKA STATE

International Journal of Research in Management ISSN 2249-5908 Available online on http://www.rspublication.com/ijrm/ijrm_index.htm Volume 15 No. 5, 2025 DOI: 10.5281/zenodo.17464812 Original Article @2025 RS Publication, rspublicatio[email protected] 234 A STUDY ON LOCAL AND INTERNATIONAL FACTORS INFLUENCING THE PRODUCTION AND EXPORT OF COFFEE FROM KARNATAKA STATE Movina Kumara N P Assistant Professor, Department of Commerce, Government First Grade College for Women, M G Road, Hassan District Prof. Nagendra Babu K Professor, Department of Studies in Commerce, University of Mysore, Manasagangotri, Mysuru. INTERNATIONAL JOURNAL OF RESEARCH IN MANAGEMENT Available online on http://www.rspublication.com/ijrm/ijrm_index.htm ISSN 2249-5908 ARTICLE INFO ABSTRACT ©2025 RS Publication Paper ID: IJRM68FF230C3CD9E Received: 2025-09-28 Published: 2025-10-28 DOI: https://dx.doi.org /10.5281/zenodo.17 464812 Page No: 234-254 India's coffee exports have grown significantly due to the increasing global demand for its rich and unique flavors. In the first half of January 2025, India exported over 9,300 tonnes of coffee, with top buyers including Italy, Belgium, and Russia. The main objective of this research is to study the local and international factors influencing the production and export of coffee from Karnataka state. Under the stratified sampling technique, from each district, one coffee-growing village was selected randomly for further sampling. A list of coffee growers from each village and a total of 312 farmers, including export traders, was prepared for the study purpose. For the analysis purpose, regression was used to find out the influence of local and international factors influencing the production and export of coffee from Karnataka. The research revealed that the international factors such as export incentives and logistical support, high product quality, adherence to international labelling and packaging standards, GDP of the destination, distance of the client country, foreign exchange, growing demand for value-added products like roasted and instant coffee, immense export expertise and knowledge, and coffee market liberalization were found significant with export satisfaction by the coffee exports from Karnataka state. It is also found that the unique contribution for the variables such as investment viability of coffee plantations, lesser production costs, higher yields, ecologically rich Western and Eastern Ghats, sustainability of coffee farming, setting up coffee processing plants, empowering farmers, small-scale producers together, and linking to the export market were influencing production and export satisfaction with the export of coffee by the coffee growers. Keywords: Local. International, Influence, Coffee, Export, Karnataka Cite This Paper: Movina Kumara N P and Prof. Nagendra Babu K.(2025). "A STUDY ON LOCAL AND INTERNATIONAL FACTORS INFLUENCING THE PRODUCTION AND EXPORT OF COFFEE FROM KARNATAKA STATE". INTERNATIONAL JOURNAL OF RESEARCH IN MANAGEMENT (IJRM), vol. 15, no. 5, 2025, pp. 23425 4 . DOI: https://dx.doi.org/10.5281/zenodo.17464812 International Journal of Research in Management ISSN 2249-5908 Available online on http://www.rspublication.com/ijrm/ijrm_index.htm Volume 15 No. 5, 2025 DOI: 10.5281/zenodo.17464812 Original Article @2025 RS Publication, rspublicatio[email protected] 235 1. INTRODUCTION Coffee is a brewed drink prepared from roasted coffee beans, the seeds of berries from certain coffee species. The seed is separated from the fruit to produce green coffee. Green coffee is then roasted, which transforms the raw green coffee into a consumable product, roasted coffee. Roasted coffee is then ground into a powder and mixed with water to produce a cup of coffee (Das, A., 2020). Coffee is darkly colored, bitter, and slightly acidic and has a stimulating effect, primarily due to its caffeine content. Coffee plays a vital role in the Indian economy, serving as a significant agricultural export and a major source of income for millions of farmers, particularly in the southern states (Kodigehalli, B. V. 2011). The coffee industry not only contributes to India's foreign exchange earnings but also supports rural development and employment in various regions of the country. Coffee occupies a place of pride among plantation crops grown in India. It is the most important cash crop that is grown in the tropics (Jagadeesh M. S., et al., 2024). Generally, coffee is the second largest traded commodity next to petroleum products. India's coffee was considered the best coffee in the world. To increase the sustainability of coffee production, an emphasis should be placed on improving coffee quality through sustainable, environmentally friendly cultivation practices, which can result in higher net returns in the long run (Shreedevi, B. C., et al., 2016). India is becoming known around the world as one of the world's leading coffee producers. India produces some of the world's best coffee, which is grown in the shade. With over 3 million coffee growers, coffee cultivation is a source of employment in India. The coffee plant is a woody perennial evergreen dicotyledonous plant that belongs to the Rubiaceae family (Thanuja, P., and Singh, N. K., 2017). Two main species of coffee are cultivated today. Coffea arabica, known as Arabica coffee, accounts for 75-80 percent of the world’s production. Coffea canephora, known as Robusta coffee, accounts for about 20 percent and differs from the Arabica coffees in terms of taste. History of coffee usage goes back to the thirteenthThe history century (Arun, S. 2025). The Arabs were the first to cultivate and also to trade coffee. Coffee, nicknamed “Islamic milk” and “sage’s milk,” has conquered the third most popular drink after water and wine. Over 125 coffeeconsuming countries, about 50 percent of them produce coffee. With 33.16 percent of the world’s total coffee production, Brazil stands first, and with 4.5 percent of total coffee production, India stands seventh among the top coffee-producing countries (International Coffee Organization) (Balakrishnan, M. 2018). With the tune of 4000 crore Rs. of foreign exchange, Indian coffee has created itself a niche in the international market. In India, Karnataka, Tamil Nadu, and Kerala are the three states cultivating the coffee predominantly. Karnataka, accounting for 71.03 percent of India’s total coffee production, owns the pride place (Deepika, M., & Amalendu, J. 2013). International Journal of Research in Management ISSN 2249-5908 Available online on http://www.rspublication.com/ijrm/ijrm_index.htm Volume 15 No. 5, 2025 DOI: 10.5281/zenodo.17464812 Original Article @2025 RS Publication, rspublicatio[email protected] 236 2. INDIA’S COFFEE EXPORT India is primarily an export market for coffee, although demand for coffee in India is increasing. Cafes in urban areas, the gradual shift from the tea-drinking habit, and the preference of the millennials and Gen Z with changing lifestyles and values have continued to impact coffee consumption in India (Deepika, M.G. 2017). The primary coffee-growing regions of India are Karnataka, Kerala, and Tamil Nadu, forming the traditional coffee-growing region of the south, followed by the new areas developed in the nontraditional areas of Andhra Pradesh and Orissa on the eastern coast of the country, and with a third region comprising the states of Assam, Manipur, Meghalaya, Mizoram, Tripura, Nagaland, and Arunachal Pradesh in northeastern India (Gurusamy, P., & Yamakanith, P. 2015). Table 1: States wise Support India’s Coffee Industry Rank State Key Facts Production (2022-23, Tonnes) 1 Karnataka Largest coffee producer in India; contributes around 70% of total output. Karnataka remains on top due to tradition, climate, and skill 248,000 2 Kerala Known for smallholder Robusta farms in Wayanad and Idukki. 72,500 3 Tamil Nadu Grows Arabica in hilly zones like Nilgiris and Shevaroys. 18,700 4 Andhra Pradesh Home to Araku Valley, where tribal farmers grow organic coffee. 12,260 5 Odisha Coffee farms in hilly areas like Koraput are gaining attention. 465 (JASREET KAUR: 2025) To enhance coffee production and meet growing domestic and international demand, the Coffee Board of India has launched several important initiatives (Kumareswaran, T., Singh, H., 2019). Through the Integrated Coffee Development Project (ICDP), the focus is on improving yields, expanding cultivation in non-traditional regions, and ensuring the sustainability of coffee farming. These measures are part of a comprehensive strategy to strengthen India's coffee industry, increase productivity, and improve its global competitiveness (Laxmiputra, 2022). About seventy percent of coffee produced in India is exported to different countries around the world. India accounts for 3.26 percent of the world’s coffee production and 3.02 percent of the world’s coffee export and ranks seventh and fifth in coffee production and export, respectively (Sreereshma S R et al., 2025). Italy, the Russian Federation, Germany, Poland, Belgium, and Spain are the major export destinations for Indian coffee (Madappa, C. D., & Hosamane, M. D. 2011). International Journal of Research in Management ISSN 2249-5908 Available online on http://www.rspublication.com/ijrm/ijrm_index.htm Volume 15 No. 5, 2025 DOI: 10.5281/zenodo.17464812 Original Article @2025 RS Publication, rspublicatio[email protected] 237 Table 2: Exports of Coffee from India by Countries - FY 2015/16 - 2023/2024 (Green Bean Equivalent - Quantity in MT) Destination 2015 - 16 2016 - 17 2017 - 18 2018 - 19 2019 - 20 2020 - 21 2021 - 22 2022 - 23 2023 - 24* ITALY 77361 83560 79024 76452 63605 59002 75502 58276 19619 GERMANY 28286 34804 39128 31818 34099 32205 37949 42792 14781 RUSSIAN FEDERATION 25306 28805 26345 22293 26862 16179 24802 38664 10506 BELGIUM 15909 19994 18106 18510 19941 23856 29495 27096 9456 TURKEY 15180 17230 15951 14742 10723 6029 15497 19431 6875 POLAND 6493 11133 13709 14056 16503 11749 12790 16126 5147 LIBYA 6019 6447 10545 10301 3811 9790 10722 11840 2853 INDONESIA 2957 5241 12152 10113 5060 2636 2738 5515 MALAYSIA 5788 6389 6918 9201 7735 8588 8317 10983 3099 JORDAN 9407 6972 10778 9095 7604 9197 17837 14087 5806 SPAIN 6295 9593 9960 7663 7155 5330 6619 5072 2418 U.S.A. 5418 7361 13398 7354 7037 8072 10422 10081 3690 UKRAINE 3844 5096 6748 7327 6947 5711 6880 1926 1644 SLOVENIA 10910 10059 8985 6687 5525 4155 4589 5295 1264 AUSTRALIA 6759 5599 7857 6398 5985 6168 6808 5869 2370 GREECE 6533 7790 5616 6137 5607 5503 7725 6527 2559 KUWAIT 5343 5001 6457 5870 6675 6647 6032 6364 2636 KOREA,REPUBLIC OFS 2279 4513 4273 4618 4034 4269 4828 5563 2292 SYRIA 1634 4028 3149 4482 3366 2054 5900 3735 1609 ISRAEL 4064 3317 5199 4356 4347 4780 7203 6438 1102 SAUDI ARABIA 3688 3511 4846 4293 3152 3793 5352 6341 1563 UNITED KINGDOM 2592 3046 3113 3849 4427 3388 4300 5945 3054 IRAN,ISLAMIC R/O 886 866 2056 3830 4181 3253 2450 2532 881 CROATIA 529 1768 2381 3709 3869 3573 4600 3355 1686 PORTUGAL 3359 3786 3659 3533 3006 2441 2280 1541 1887 VIETNAM 995 912 3035 3449 2915 1356 4246 3896 1027 FRANCE 3573 2713 3372 3319 2307 1572 1627 2452 947 UA EMIRATES 1911 2289 2406 3142 2753 4662 9316 17476 6132 EGYPT 1649 1334 2682 3022 3477 3764 7000 4345 1187 SWITZERLAND 2807 2248 2245 2917 3312 4978 2815 2969 1223 NETHERLANDS 1209 2459 2987 2653 2740 3065 2880 2418 2332 FINLAND 4038 3125 2268 2357 1248 383 634 981 857 TAIWAN 2780 2911 3031 2320 2489 3134 2427 2800 828 SINGAPORE 1419 1475 1613 1737 1705 1645 1389 573 118 SENEGAL 1020 1598 1610 1586 1281 1404 1533 1156 734 BENIN 545 1276 1426 1570 1757 2838 2294 923 69 MOROCCO 563 783 2134 1505 1791 1368 2871 1078 257 MONTENEGRO 1610 1406 1483 1481 653 1122 1783 1517 472 BANGLADESH 311 782 1157 1465 1656 1835 2455 2957 780 CANADA 1044 1179 1176 1407 1175 672 931 1125 207 ALBANIA 1001 1459 768 1348 1832 1317 1425 1410 727 MALI 1870 1766 1748 1238 1711 3100 1179 389 132 ROMANIA 1589 1771 1096 1140 683 674 1227 1279 310 SULTANATE OF OMAN 841 960 1206 1063 725 594 341 44 29 TOGO 561 935 1099 995 761 1216 1448 1032 275 NIGERIA 856 680 1029 970 1185 2510 1993 898 445 JAPAN 1323 836 715 926 777 1148 1130 907 316 LATVIA 925 831 732 899 971 1126 1215 806 370 IVORY COAST 394 728 84 844 558 601 1054 101 DENMARK 872 1422 1485 841 713 67 3 3 MAURITANIA 542 799 788 776 700 1144 1929 237 264 LITHUANIA 298 361 453 708 237 71 130 77 LEBANON 158 287 513 706 272 402 1519 2710 1182 NEW ZEALAND 280 354 401 664 425 374 479 458 139 International Journal of Research in Management ISSN 2249-5908 Available online on http://www.rspublication.com/ijrm/ijrm_index.htm Volume 15 No. 5, 2025 DOI: 10.5281/zenodo.17464812 Original Article @2025 RS Publication, rspublicatio[email protected] 238 CHINA,PEOPLE'S R/O 476 590 522 636 770 729 779 430 243 BURKINA FASO 1061 1092 1049 629 837 801 325 152 47 NIGER 1603 1191 1252 590 323 545 1367 952 1054 NEPAL 255 428 429 565 763 765 1073 1178 364 OTHERS 12984 14059 23446 7422 9800 11297 29487 15221 6289 TOTAL 310204 352945 391796 353576 326554 310647 413942 396346 138153 * FY - Financial year (April to March). Includes re-exports, *based on export permits upto 31.07.2023 (Source: https://coffeeboard.gov.in/Database) Table 3: India’s Coffee Exports during 2000-01 to 2023-24 Year Coffee Exports (Rs. In Crores) Annual Growth Rate Share in Total Agriculture Exports Share in Total Exports 2000 - 01 1185 ---- - 4.14 0.57 2001 - 02 1095 - 7.59 3.68 0.51 2002 - 03 994 - 9.22 2.86 0.38 2003 - 04 1086 9.26 2.91 0.36 2004 - 05 1069 - 1.57 2.56 0.28 2005 - 06 1731 61.93 3.51 0.37 2006 - 07 1969 13.75 3.15 0.34 2007 - 08 1872 - 4.93 2.36 0.28 2008 - 09 2256 20.51 2.62 0.26 2009 - 10 2032 - 9.93 2.27 0.24 2010 - 11 3010 48.13 2.50 0.26 2011-12 4535 50.66 2.42 0.31 2012 - 13 4711 3.88 2.04 0.28 2013 - 14 4799 1.87 1.85 0.25 2014 - 15 4973 3.63 2.12 0.26 2015 - 16 5125 3.06 2.37 0.29 2016 - 17 5669 10.61 2.49 0.30 2017 - 18 6245 10.16 2.51 0.31 2018 - 19 5722 - 8.37 2.11 0.24 2019 - 20 5237 - 8.48 2.11 0.23 2020 - 21 5340 1.97 1.73 0.24 2021 - 22 7614 42.58 2.03 0.24 2022 - 23 9191 20.71 2.14 0.25 2023 - 24 10645 15.82 2.60 0.29 Source: Indiastat. Table 3 portrays the value of coffee exports, which has decreased from Rs.1185 crores in 2000-01 to Rs.1086 crores in 2003-04, and also its share in total agriculture exports, which has dwindled from 4.15 percent to 3 percent during the corresponding years. Then this value drastically accelerated from Rs.1069 crores in 2004-05 to Rs.1731 crores in 2005-06. The value has slightly decreased from Rs.1969 crores in 2006-07 to Rs.1872 crores in 2007-08 due to a rise in freight rates to European countries. The value of coffee exports has decreased from Rs.2256 crores in 2008-09 to Rs.2032 crores in 2009-10 due to the low price of coffee in the world market. The coffee export has significantly increased from Rs.4535 crores in 2011-12 to Rs.4799 in 2013-14, but its share in total agriculture exports has plummeted from 2.52 percent to 1.84 percent during corresponding years. The coffee export has accelerated from Rs.5125 crores in the year 2015-16 to the level of Rs.5669 crores in 2016-17. After that, coffee export has slightly decreased from Rs.6245 crores in 2017-18 to Rs.5722 crores in 2018-19 due to a plummet in shipment of robusta and instant coffee varieties. The value has tremendously increased from Rs.5340 crores in 2020- International Journal of Research in Management ISSN 2249-5908 Available online on http://www.rspublication.com/ijrm/ijrm_index.htm Volume 15 No. 5, 2025 DOI: 10.5281/zenodo.17464812 Original Article @2025 RS Publication, rspublicatio[email protected] 239 21 to Rs.7614 crores in 2021-22 due to increased demand from European buyers stockpiling ahead of the European Union's new Deforestation Regulation (EUDR). Then this value significantly accelerated from Rs.9191 crores in 2022-23 to Rs.10645 crores in 2023-24 due to increasing global demand for its rich and unique flavors and top buyers including Italy, Belgium, and Russia. India’s export value of coffee has registered negative growth. During the years 2001-02, 2002-03, 200708, 2018-19, and 2019-2020, the coffee exports have registered negative growth. In the year 200506 the annual growth of coffee exports registered the highest level of 61.93 percent, and in the year 2013-14 the growth registered the lowest level of 1.87 percent. In the year 2000-01 the share of total agriculture exports of coffee exports registered the highest level of 4.14 percent, and in the year 2020-21 the share registered the lowest level of 1.73 percent. In the year 2000-01, the shares in total exports of coffee exports registered the highest level of 0.57 percent, and in the year 201920, the share registered the lowest level of 0.23 percent. 3. COFFEE PRODUCTION IN KARNATAKA India’s coffee production and export data, coupled with the analysis of trade potential, illustrate both strengths and areas for improvement in its export strategy. India stands as a significant player in the global coffee market, producing a substantial volume of coffee, particularly in the state of Karnataka. Karnataka is the highest producer of coffee in the country (Amaravathi and Raja A. S., 2014). Karnataka is able to produce coffee beans that are exported throughout the world. Karnataka leads in production due to its growing conditions, which include hilly areas with a cool climate and enough rainfall. Karnataka is located in southern India and has the ecological land of the Western Ghats, which is recognized by UNESCO as a world heritage site (Sushma K K, Perumunda, S 2025). The growing districts of Karnataka are the stagnant hills of Chikmagalur, Coorg (Kodagu), and Hassan, which have the right conditions of frequency of rainfall. He reasons for producing the highest coffee due to the following reasons (Padmanabha, 2016). Climate: Karnataka contains a unique set of growing conditions and climate pattern schemes that form the basis for coffee farming. Generally, Kerala has the misty mornings, moist environment, rainy monsoon climate, and relatively cool weather, which will foster the growth of high-quality Arabica and Robusta beans (Prakash, K. G., et al., 2022). Land Use: Coffee is mainly grown on hilly, shaded plantations in Karnataka, where farmers often grow pepper, cardamom, and other crops alongside coffee, adding value to the land. Types of Coffee: India grows two main types of coffee: the soft and aromatic Arabica and the robust Robusta. Coffee from Karnataka is exported as green beans or as part of blends of roasted and instant coffee to Italy, Germany, and Russia. Irrigation: Coffee naturally requires less water than rice, but Karnataka's year-round rainfall and abundant water conservation aids ensure that the water required for Karnataka's needs is limited primarily to the rainwater holding capacity of the soil. Tradition: Karnataka has a long historical narrative lined with cultural roots of coffee farming. The coffee story in India started with Baba Budan, who carted coffee beans into Chikmagalur. Since then, the people of Karnataka have developed artisanship around growing, harvesting, and processing coffee (Jagadeesh M. S., et al., 2024). International Journal of Research in Management ISSN 2249-5908 Available online on http://www.rspublication.com/ijrm/ijrm_index.htm Volume 15 No. 5, 2025 DOI: 10.5281/zenodo.17464812 Original Article @2025 RS Publication, rspublicatio[email protected] 240 South Indian filter coffee has, over time, made a name internationally as well. Cultural Significance: Coffee is a culture in Karnataka, particularly in Coorg and Chikmagalur, where it is woven into the fabric of local identity. Each indigenous family has their own way of preparing coffee, and the tradition has circulated from generation to generation (Saroj, S. & Dr. Sanjay Saroj. 2019). Tourism and Coffee: Coffee estates in Karnataka provide opportunities for homestays and guided tours of coffee plantations. Visitors can see how coffee is cultivated, harvested, roasted, and brewed, thereby developing a relationship with both the coffee and tourism industry in Karnataka (Shalima Devi, G. M., Anil Kumar, K. S., 2009). Employment: Over 700,000 people are employed and dependent on the coffee industry in Karnataka in a variety of roles, including farmers, estate workers, sorters, transporters, and sellers. Coffee also supports small enterprises, including cafes and roasteries. Export: In 2023-24, India exported over USD $1.29 billion worth of coffee, primarily from Karnataka (Rakash, K. G., et al., 2022). Table 4: (Production in Karnataka) (in MT) Sl. No. State/District 2023-2024* 2022-2023 Arabica Robusta Total Arabica Robusta Total 1 Chikkamagaluru 41,900 51,150 93,050 37,150 45,300 82,450 2 Kodagu 21,060 109,225 130,285 19,120 109,600 128,720 3 Hassan 19,000 24,550 43,550 15,750 21,100 36,850 Total 81,960 184,925 266,885 72,020 176,000 248,020 (Source: https://coffeeboard.gov.in/Database) The increase in overall coffee production from 2022-23 to 2023-24, particularly in both Arabica and Robusta varieties, showcases Karnataka’s growing capacity to meet international demand. 4. LITERATURE REVIEW The analysis reveals that India has the highest trade potential in the United Kingdom, France, the Netherlands, the United States, and Poland. However, India has already exhausted its trade potential in markets like Italy, Belgium, Jordan, Germany, and Slovenia (Soujanya, C. K., et al., 2023). Interestingly, India's major export destinations are primarily those where its trade potential is already exhausted. This paradox highlights the disconnect between India's trade potential and its current export focus, suggesting an opportunity to redirect efforts toward underutilized markets (Upendranadh, C. 2010). Countries with closer proximity to India are more likely to import Indian coffee, whereas distant markets, despite potential demand, face higher transportation costs, which dampens trade (Sunagar, M., & Arahunasi, U. H. 2022). This finding suggests a need for India to explore and invest in cost-effective logistics solutions to enhance its competitiveness in distant but lucrative markets. A critical insight from this study is the mismatch between India’s actual export destinations and its untapped trade potential (Sunagar, M., & Arahunasi, U. H. 2022). The analysis reveals that while India has exhausted its trade potential in key markets like Italy, Belgium, and Germany, these countries remain major export destinations (Upendranadh, C. 2010). Conversely, markets with significant untapped potential, such as the United Kingdom, France, and the International Journal of Research in Management ISSN 2249-5908 Available online on http://www.rspublication.com/ijrm/ijrm_index.htm Volume 15 No. 5, 2025 DOI: 10.5281/zenodo.17464812 Original Article @2025 RS Publication, rspublicatio[email protected] 241 Netherlands, are not fully leveraged (Soujanya, C. K., et al., 2023). This misalignment indicates an opportunity for India to diversify its export strategy by focusing on underutilized markets where its coffee could achieve greater market penetration (Das, A., 2020). To strengthen its position in the global coffee market, India must address both the internal and external factors influencing its export competitiveness (Kodigehalli, B. V. 2011). This includes improving production efficiency, enhancing product quality, and aligning export strategies with markets that offer the most significant growth potential (Rakash, K. G., et al., 2022). By redirecting efforts toward these underexploited markets and optimizing supply chain logistics, India can improve its competitiveness and secure a more robust and sustainable position in the global coffee trade (Jagadeesh M. S., et al., 2024). These initiatives, combined with export incentives and logistical support, are playing a crucial role in expanding India’s coffee industry. They help improve both domestic production and global competitiveness, firmly establishing India as a leading player in the global coffee market (Shreedevi, B. C., et al., 2016). Indian coffee exports display a strong seasonal tilt, with exports peaking from March to June. Coffee is a highly seasonal product, and it is challenging to harvest, transport, and store it. All the steps from production to export require immense expertise and knowledge (Thanuja, P., and Singh, N. K., 2017). 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. Since more than 50% of instant coffee is exported from Andhra Pradesh, many other states could attempt to mimic Andhra Pradesh by setting up coffee processing plants to boost India’s overall coffee exports (Arun, S. 2025). Coffee cultivation in India assumes importance not only because it provides foreign exchange through exports but also from the perspective of the livelihoods of a large number of small growers and plantation workers (Balakrishnan, M. 2018). In the study (Deepika, M., & Amalendu, J. 2013), the export performance of coffee in India is observed to be acceptable, and it tends to be improved by increasing the value of the coffee beans at the beginning. Coffee is one of the well-known drinks on the planet (Deepika, M.G. 2017). Coffee utilization in India consistently expanded; sending out procurement acquired by exchanging coffee is agreeable at the present, and it is anticipated to be better in the future. In here, India has been a profound exporter of coffee to Italy from the top five nations (Gurusamy, P., & Yamakanith, P. 2015). On the off chance that administration steps up in supporting the coffee producers, the market will track down a superior possibility (Kumareswaran, T., Singh, H., 2019). Laxmiputra (2022), in their study, explain the production and export performance of coffee in India. The area, production, and export quantity of coffee registered a similar and fluctuating growth rate during the overall study of coffee area and production for strengthening the coffee exports in India. This ought to be finished by adopting new technology and cultivation practices for coffee-growing regions (Sreereshma S R et al., 2025). There is a fluctuation in the export performance of coffee due to the rising number of international exporters, but it is a constant and positive trend in the overall study period. If the government takes proper initiative in supporting the coffee producers, in addition to the exporters, the market will find constant prospects (Madappa, C. D., & Hosamane, M. D. 2011). The coffee supply chain works in an international International Journal of Research in Management ISSN 2249-5908 Available online on http://www.rspublication.com/ijrm/ijrm_index.htm Volume 15 No. 5, 2025 DOI: 10.5281/zenodo.17464812 Original Article @2025 RS Publication, rspublicatio[email protected] 242 way; the direct link between producers and consumers is not present. Coffee is traded down a complex line of intermediaries, ranging from local traders, exporters, international traders, roasters, and retailers, who each capture a percentage of the retail value of coffee (Amaravathi and Raja A. S., 2014). In the Indian coffee industry there have been huge developments in the future markets for coffee. Despite the efforts to disseminate information, participation of smallholders in the future markets has been relatively low so far. However, it has helped in widening the access to markets, empowering farmers to make better cropping and selling decisions (Sushma K K, Perumunda, S 2025). Furthermore, it has facilitated the upgrading of storage, grading, and technology infrastructure. Indeed, there is a reduction in information asymmetries (Shalima Devi, G. M., Anil Kumar, K. S., 2009). In recent years, there has been a huge demand for certified and specialty coffee, including the traceability of the product in the chain. However, this requires meeting certain standards from the level of production (Padmanabha, 2016). Value addition to the green coffee involves the cost of certification, promotion of quality improvement, raising the reputation of the origin, good marketing skills, and also sometimes costly physical investments (Prakash, K. G., et al., 2022). This requires a certain level of good organizational development for producers to meet the legal, quality, and volume requirements of the international buyers (Jagadeesh M. S., et al., 2024). It is not possible to meet this huge demand from the international buyers by a single small-scale producer; hence, efforts should be made to bring the small-scale producers together and link them directly to the export market (Saroj, S. & Dr. Sanjay Saroj. 2019). 5. RESEARCH PROBLEM Coffee is one of the world's most popular beverages; some claim it is the most widely consumed liquid in the world aside from water. Coffee's success as a beverage undoubtedly owes both to the caffeine it harbors and its sensory pleasure. Coffee lovers come to associate the energizing lift of the caffeine with the richness and aroma of the beverages that deliver it. Coffee is produced from the seeds of a small red fruit that grows halfwayin size between a shrub and a tree. Coffee production is a labor-intensive process involving a vast intercontinental collaboration. The coffee market is oversupplied. Sixty to sixty-five percent of the world supply of coffee is from Latin America. Indian coffee has created a niche for itself in the international market, and the Indian coffees are earning a high premium, particularly Indian Robusta, which is highly preferred for its good blending quality. Arabica coffee from India is also well received in the international market. After intensive literature review, it is understood that there is a need for identifying and analyzing indicators of local and international factors affecting production and export of coffee from Karnataka State, which helps in developing conceptual theory and constructing an integrated model for enhancing export performance by the coffee farmers and traders. The main reason for conducting this research is to develop systematic knowledge to increase the performance in the field of production and export of coffee after considering international and local factors affecting the production and export of coffee from Karnataka. International Journal of Research in Management ISSN 2249-5908 Available online on http://www.rspublication.com/ijrm/ijrm_index.htm Volume 15 No. 5, 2025 DOI: 10.5281/zenodo.17464812 Original Article @2025 RS Publication, rspublicatio[email protected] 249 9. SUGGESTIONS The trend in coffee export can be improved by improving the quality of coffee to international standards, and the export quantity of coffee can be increased by offering intentional competitive prices, and the process of packing should use airtighttechnology and aluminum packaging to preserve the aroma and taste as well as to avoid damage by light or heat. By reducing the cost per kilogram of green beans, Karnataka growers can offer more competitive export pricing. The Coffee Board already provides extension services such as soil sampling, pest control training, etc. Use the incentives provided by the Coffee Board, e.g., freight/transit assistance and machinery subsidies for roasting/grinding/packaging. Currently, Europe remains the top destination for Indian coffee. Karnataka should systematically target underutilized regions: e.g., Latin America (for blends), Africa (for niche origins), Southeast Asia (rising coffee consumption), and newer markets in Eastern Europe, CIS, Africa, and South & Southeast Asia. Develop market intelligence: The Coffee Board of India (CBI) already provides export-market information and global trends. Use embassies/trade missions, trade fairs, and buyer-seller meets to unlock these markets. Karnataka has strong origin branding potential (e.g., GI-tagged coffees such as Coorg Arabica). By offering specific origin-labelled coffees, microlots, traceability, sustainable shade-grown, etc., Karnataka exporters can command premiums, which helps pricing competitiveness (rather than competing on lowest cost only). The Coffee Board’s proposed national certification for producers will help quality & export credibility. Many buyers pay for origin, story, and sustainability. The state and national effort should aim to reduce export turnaround time, improve port connectivity and container handling, and reduce wastage/moisture loss—enabling better pricing competitiveness. Use state-supported schemes (e.g., One District One Product in Kodagu) to support small enterprises around coffee. Growers/exporters should actively engage with CBI for training programs such as the “VIKRAYAM” incubation program. Encouragement for FPOs and small-grower collective engagement, particularly via CBI extension services. To compete globally (in export markets), exporters must ensure uniform quality (bean size, moisture content, defect rates), proper processing, storage, and packaging. Use CBI’s services for moisture & outturn testing. Invest in traceability and certification (organic, shade-grown, and sustainability) so that international buyers see reliability—this can translate into more stable pricing and better contracts. In global coffee markets, price volatility is high (weather in Brazil/Vietnam affects supply), so Karnataka exporters should hedge/forward contract/negotiate long-term deals with buyers. The world is increasingly buying via digital channels; promoting Karnataka coffee via online marketing, e-commerce, social media, traceability apps, and origin stories helps. Use CBI’s “India Coffee App” and other digital tools to register, map plantations, and get certification. Participate in international trade fairs and buyer-seller meets under CBI’s export-promotion umbrella. Encourage micro-lots and subscription models (e.g., roasters overseas sourcing “Karnataka origin” directly) to tap niche markets with better pricing. Encourage soil health & biological fertilizers: Use of biological fertilizers and organic matter (compost, green manure) improves soil fertility, reduces the cost of synthetic fertilizers, and can reduce long‐term maintenance burdens. Utilize International Journal of Research in Management ISSN 2249-5908 Available online on http://www.rspublication.com/ijrm/ijrm_index.htm Volume 15 No. 5, 2025 DOI: 10.5281/zenodo.17464812 Original Article @2025 RS Publication, rspublicatio[email protected] 250 institutional subsidies for infrastructure: The Coffee Board of India provides support for water augmentation, mechanization, replanting, and infrastructure. Adopt smart irrigation & fertigation systems: Especially helpful in hilly zones of Karnataka. For example, drip irrigation and automation were introduced via Israeli firms to manage water scarcity, helping reduce maintenance cost and risk from erratic rainfall. Use rainwater harvesting and hillside erosion control: Since many coffee plantations lie in the Western Ghats region, managing runoff, conserving soil moisture, and preventing erosion during heavy monsoon contribute to lower maintenance and greater sustainability. Promote climate‐resilient varieties and shade‐grown systems: Some varieties (especially robusta) are more tolerant of variability, and shade systems buffer extreme rainfall or drought stress. Provide targeted advisories & alerts for monsoon staging: Via digital services such as the Coffee Krishi Taranga (CKT) IVR/advisory system, timely alerts of rainfall and pest/disease risk associated with monsoon can help growers preempt maintenance burdens. Support formation/strengthening of FPOs (Farmer Producer Organizations)/cooperatives: This allows small growers to access inputs, training, infrastructure, and markets more effectively, increasing incomes and stabilizing livelihoods. For example, smallholder farmers in Karnataka saw higher revenue through technology & institution partnerships. Provide stable employment/training for plantation workers: Integrate training programs for workers (pruning, harvesting, quality sorting, post‐harvest handling) to improve efficiency, reduce wastage, and improve quality, which benefits both growers & workers. Promote value‐added activities at the plantation level: Encourage small growers/plantations to engage in on‐site processing (wet milling, drying, packaging) or local micro roasting so that income doesn’t rely only on raw green beans. This increases margin per worker and improves employment. Implement social safeguards and labor welfare: Since labor is a key cost and risk, providing fair wages, housing/seasonal work support, and mechanization where appropriate will improve livelihoods and reduce maintenance costs (by lowering labour turnover, absenteeism, andlabor wastage). While many plantations are hilly, flatter parts adopt mechanized pulping, drying, and packing to reduce labor costs/maintenance overhead. Promote high‐quality plantation rejuvenation and pruning cycles: Old plantations require high maintenance; systematic rejuvenation will reduce cost, increase yield/quality, and lower ongoing maintenance. Training via Coffee Board extension services is available. Introduce sustainable & organic cultivation methods. Quality improvement and better export value: By applying the above (tech adoption, maintenance reduction, climate resilience), plantations will produce higher quality coffee beans, which fetch higher prices in export markets, cushioning livelihood and maintenance cost pressures. Linking small growers directly to export/trading value chains: Via cooperatives/FPOs plus digital platforms, small growers can bypass intermediaries, reduce cost leakage, and benefit from export premiums (specialty/traceability). Use institutional support (Coffee Board) to fund adoption of technology/training for small growers: Include specific schemes targeting small growers/plantation workers for technology upgrades, climate resilience, and mentorship for value‐ added processing. Promote certification/sustainability credentials: As export markets increasingly International Journal of Research in Management ISSN 2249-5908 Available online on http://www.rspublication.com/ijrm/ijrm_index.htm Volume 15 No. 5, 2025 DOI: 10.5281/zenodo.17464812 Original Article @2025 RS Publication, rspublicatio[email protected] 251 demand sustainability (e.g., deforestation-free supply chains), small growers should be supported to adopt traceability & sustainability certifications that may cost upfront but reduce risk and improve export access. 10. DIRECTIONS FOR THE FUTURE RESEARCH A similar study can also be conducted in the future for comparing factors responsible for productivity differences in two or more coffee-growing regions or states of India. Besides, other factors like the impact of agronomic factors (fertilizers, irrigation, pruning, weeding) on the productivity of coffee can be studied. The major focus in the study has been given to the export of coffee. Hence, there is scope for further studies focusing on the impact of institutional support on the export of coffee. A more extensive geographical investigation across different coffee-growing areas would also help to confirm the results and investigate their more general relevance. Future research can be conducted based on climate change and its impact on coffee yield and quality in Karnataka. It is directed to carry out the comparative studies between Karnataka and other coffeeproducing regions (Kerala, Tamil Nadu, or even international regions like Brazil, Ethiopia, or Vietnam). There is scope for future research to study value chain analysis and sustainability of coffee production. It also directed to conduct future research on the role of government policies and trade agreements in agricultural exports. Understanding factors that affect exports can help in global market positioning. Explore the strategies for starting a coffee export business or specialty coffee brand, leveraging insights on market trends and quality factors. Case studies on Karnataka’s coffee industry for use in academic curricula can be generated. 11. CONCLUSION Coffee producing industry has high growth potential, and abundant untapped opportunities. Since coffee will never cease to be a constant in our daily lives, innovation and competition will remain the leading drivers for this sector. India needs to emerge as a dominant player within the coffee marketplace through its plethora of niche, high-quality offerings. Beyond this, value addition at all stages of coffee processing should be a key area of focus for players within the coffee supply chain in India. While being wary of the ongoing competition from African coffee, Indian coffee exporters should shift some focus from saturated markets to venturing into upcoming markets like Saudi Arabia. For this, the Coffee Board and the Government of India could aid the sector with exploratory budgets to identify new demands and geographies. Italy, Germany, Russian Federation, Belgium, Spain, U.S.A., Jordan, Slovenia, Greece, Switzerland, Finland, Croatia, France, Egypt, Ukraine, Portugal, Israel, Australia, Malaysia and Singapore have been the top twenty countries of Indian coffee exports in the past. Coffee mainly exports oriented commodity. India is the growing exporter of coffee among world competitors. The area, production, and export quantity of coffee registered a similar and fluctuation growth rate during the overall study period. It’s indicating that there is scope for increasing the coffee area and production for International Journal of Research in Management ISSN 2249-5908 Available online on http://www.rspublication.com/ijrm/ijrm_index.htm Volume 15 No. 5, 2025 DOI: 10.5281/zenodo.17464812 Original Article @2025 RS Publication, rspublicatio[email protected] 252 strengthening the coffee exports in India. This should be done by adopting new technology and cultivation practices for coffee growing region. There is a fluctuation in export performance of coffee due to the increasing the global exporters but it is stable and positive trend in the overall study period. If government takes proper initiative in supporting the coffee producers and as well as exporters the market will find stable and prospect. 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