In India 98 per cent of coffee farms are smallholder-run.
| Photo Credit:
Carla Carniel
Coffee isn’t just a beverage — it’s a global commodity valued at over $100 billion, linking farmers in the Global South with discerning consumers across continents. While India contributes only around 3 per cent of the world’s coffee, the country is increasingly playing a significant role in the specialty space. The economics behind this shift—balancing global demand with local realities—can be illustrated vividly using the Poomaale estate in Kodagu
Global demand: Booming but unpredictable
Global coffee consumption reached 170 million 60-kg bags in 2023, per the International Coffee Organization (ICO). Demand is surging in traditional markets like Europe and the U.S., but also in new ones such as China and India. Within this, there’s been a marked shift toward sustainably sourced, traceable, and high-quality coffees.
Yet behind this growth lies a volatile market. Coffee prices have swung widely: from $1.00/lb in 2020, peaking at $2.25/lb in 2022, and stabilising around $1.60/lb in early 2024. These fluctuations—driven by climate shocks, speculative trading, and supply-demand mismatches—hit producers hard, especially smallholders.
Indian coffee farmers and the challenge of volatility
In India, where 98 per cent of coffee farms are smallholder-run, price volatility is a major challenge. Most producers who grow Canephoras (Robusta), often sell it into bulk supply chains with little value addition. The result: rising input costs, limited price control and shrinking margins.
This is the context in which a different approach — a regenerative farming collective—was taken up at the Poomaale estate. Located in the rainforests of Kodagu, the estate spans over 130 acres and focuses on restoring natural biodiversity while growing coffee in harmony with native ecosystems.
Regeneration and value chain control
Poomaale grows shade-grown Canephora (Robusta) under a dense canopy of native trees, using regenerative practices that focus on soil health, water retention and biodiversity. But perhaps more importantly, the farm doesn’t sell its cherries into the commodity market. Instead, it processes and markets its own brand of specialty-grade (fine) robusta.
This move—owning the value chain end-to-end—has allowed the coffee to command premium pricing, reduce exposure to international price swings and deliver a consistent, high-quality product to urban Indian consumers. The result is more than just economic insulation—it’s the creation of a sustainable, circular model where ecological restoration and market success go hand in hand.
Consumer shifts: The rise of conscious coffee drinking
India’s urban consumers are becoming increasingly discerning. Speciality cafés, home brewers and ethical sourcing are now part of mainstream conversations. The market for traceable, ethically grown coffee is expanding rapidly, with a projected 20–25 per cent CAGR in the specialty segment till 2030 (Source: Technavio).
With transparency, storytelling and regenerative farming at its core, the brand builds not just product loyalty but community connection. Consumers are buying into more than a flavour—they’re buying into a farming philosophy.
The bigger picture: Climate risks and future resilience
Canephora, often seen as the “hardier cousin” to Arabica, is gaining renewed attention globally as climate conditions become more unpredictable. Its resilience makes it a strategic crop in the face of increasing temperature extremes and erratic rainfall patterns.
Many farms are already ahead of the curve, combining Canephora’s natural hardiness with regenerative soil and water practices that make long-term sustainability possible. As more farmers face climate adaptation pressures, this model offers a template for replication.
Conclusion: From commodity to community
The economics of coffee are shifting—from price per kilo to value per story. By focusing on regenerative agriculture, value chain ownership and consumer education, it is being proved that global market forces don’t have to leave smallholders vulnerable.
In the cup, it’s still just coffee. But behind every bag is a forest restored, a farming system revived and a new economic model being quietly written—one where global demand doesn’t dictate terms, but inspires transformation.
The author is CEO & Co-Founder, BeWild
Published on April 19, 2025
