Profile Overview
For over three decades, Dr. D. R. Babu Reddy, Deputy Director (Market Research) has worked alongside the Coffee Board of India in its mission to strengthen and modernize the country’s coffee sector. His work has grown with the Coffee Board’s changing role, from regulation towards supporting research, quality, export facilitation and long-term sustainability across the coffee industry. In both research and administration, Dr. Reddy contributed to initiatives in farm economics, market intelligence, and export systems that supported the Board’s efforts to make the sector more transparent and data-driven. These initiatives reflect the collaborative approach through which the Coffee Board continues to guide and connect growers, policymakers, and markets. India’s progress in coffee today stands as a reflection of this shared steady leadership of the Coffee Board and the dedication of professionals like Dr. Reddy, who have worked to strengthen the foundation of Indian coffee over time.
Early Years: Bridging Economics and Agronomy
Dr. Reddy’s journey traces its roots from a humble agriculturist family in Sundupalli, a small village in the Annamayya district of Andhra Pradesh, to the lecture halls of the University of Agricultural Sciences, Bangalore. After specializing in agricultural economics and completing his Ph.D. in 1997 under the guidance of Dr. P. G. Chengappa, former Vice-Chancellor, and Dr. Lalith Achoth, a renowned economic analyst, he joined the Coffee Board as an Agricultural Economist. His first posting was at the Central Coffee Research Institute (CCRI), the center of Indian coffee research.
At CCRI, he worked across economics and agronomy. Alongside his role as an economist, he briefly headed the institute’s agronomy division, which meant he spent as much time in the fields as behind a desk. This experience gave him a perspective that connected the numbers driving farm economics with the practices shaping cultivation.
Dr. Reddy at the CCRI farm in 2002, surrounded by coffee blossoms.
Facing the Price Crisis: Research That Informed Policy
By the early 2000s, Indian coffee farmers faced serious challenges. Global prices fell sharply between 2000 and 2004. Small and medium growers in Karnataka, Kerala, and Tamil Nadu saw their incomes drop. The Coffee Board required detailed data on coffee cultivation, and Dr. Reddy contributed to this effort through an economic study conducted across major growing regions.
He visited over 230 estates across the country. The study covered both Arabica and Robusta varieties and went beyond costs and yields to capture how farms managed under difficult market conditions.
The findings showed that medium-sized farms, particularly those between 25 and 35 hectares, were the most efficient, balancing higher inputs with higher yields to reduce the overall unit cost of production.
“When you look at the cost per unit of output, it comes down significantly,” Dr. Reddy explains. “Better inputs and stronger management practices lead to higher yields, which in turn reduce costs.”
The study also highlighted the role of diversification. Unlike monocultures elsewhere, many Western Ghats plantations included pepper, cardamom, and fruit alongside coffee, contributing 30 to 35 percent of farm income. This mix helped growers sustain their operations despite falling coffee prices.
The findings of this study later supported the Coffee Board’s discussions with the government on possible relief measures. For Dr. Reddy, it was an early example of how field-based research could contribute to policy decisions and provide practical support to growers during challenging times.
Moving to Market Intelligence
In 2004, Dr. Reddy moved to Bangalore to join the Coffee Board’s Market Intelligence Unit (MIU). This was less than a decade after India’s coffee marketing system had been liberalized in 1996, ending the old pooling system. For decades before that, the Board auctioned coffee, fixed prices, and maintained detailed records of every estate. Liberalization changed that overnight. Growers could now sell directly to domestic and international buyers, and the Coffee Board’s role shifted from control to guidance.
“The Coffee Board’s role has evolved to become more of a facilitator for the coffee sector.”, Dr. Reddy states.
To guide this transition, the Board established the Market Intelligence Unit under the leadership of senior officials such as Dr. Radhakrishnan. Its goal was to make reliable, data-driven information the foundation of decision-making for the entire sector. Dr. Reddy joined as part of this growing effort to understand markets that were now more open, volatile, and globally connected.
The unit’s purpose was simple yet essential: to make sense of the numbers shaping Indian coffee.
“Everything is compiled daily from various public sources and shared as a consolidated market report,” Dr. Reddy explains.
These reports track international prices, domestic trends, and the premiums or discounts that Indian coffee commands abroad.
Beyond the daily figures, the MIU also leads the Board’s crop estimation exercises, producing three forecasts each year: post-blossom, post-monsoon, and final, based on data from over 2,200 sample estates across all producing regions collected by the Extension officers. These estimates, refined with feedback from growers and industry experts, have become reliable benchmarks for the sector.
“Figures matter,” Dr. Reddy notes. “In 2024, the estimate was 3.63 lakh tonnes, and this year, in 2025, the first estimate has crossed four lakh for the first time.”
But their work was not limited to statistics. The unit also delves deep into trade policy, comparing India’s coffee with competing origins and identifying tariff asymmetries in importing countries. This analysis guides government proposals and free trade negotiations. Thanks to these efforts, value-added coffee under the India–UK and India–UAE FTAs now enjoys zero percent tariffs, significantly improving market access. Looking ahead, the upcoming EFTA agreement and ongoing EU FTA negotiations and similar agreements aim to provide similar benefits, opening doors for Indian coffee in some of the world’s most important markets.
The Coffee Board’s role has evolved to become more of a facilitator for the coffee sector.
- Dr. Babu Reddy
The Coffee Board’s New Role
As India’s coffee industry entered a more open and competitive era, the Coffee Board focused on strengthening the systems that supported it. The priority became to help growers and exporters operate efficiently in global markets through better information, policy support, and streamlined procedures.
A major part of this modernization involved the export division, which worked to make trade processes more transparent and efficient. Earlier, most procedures were paper-heavy and time-consuming. Exporters were required to register with the Coffee Board and obtain a Registration-cum-Membership Certificate, along with an export permit and an ICO certificate of origin for each shipment, all mandatory under the Coffee Act for customs clearance. By bringing these processes online, the Board made documentation faster, more transparent, and easier to navigate. Dr. Reddy was part of this broader institutional shift, contributing to efforts that made the export system more efficient and accessible for the industry.
“Coffee has always been an export-oriented commodity,” Dr. Reddy notes. “For every order, these approvals are critical.”
But improving paperwork and reducing compliance burden was only one part of the transformation. The Coffee Board also began to take a more proactive role in promoting Indian coffee globally by participating in trade fairs, highlighting India’s regional and specialty coffees, and encouraging exporters to focus on value addition. What had once been a purely administrative system was evolving into an enabling platform that connected Indian coffee more closely to markets, buyers, and opportunities around the world
Dr. Babu Reddy, representing the Coffee Board of India, at an event in China in 2006.
Exports, Value Addition, and Domestic Growth
Under the Coffee Board’s leadership, export facilitation and market promotion have continued to gain momentum. Reflecting on India’s progress, Dr. Reddy notes,
“India evolved as one of the major suppliers of instant coffee globally, contributing to the overall growth of exports.”
It is heartening to see that high-quality, sustainably grown Indian coffees now reach more than 120 countries across continents. Coffee exports have grown nearly eightfold, from about USD 250 million in the early 2000s to an all-time high of USD 1.80 billion in 2024, crossing the one-billion mark for five consecutive years.
Building on this robust export performance, a key focus of the Board’s recent strategy has been value addition and quality improvement. Its strategy now moves beyond green bean exports to include roasted, instant, and specialty coffees that capture a greater share of final value.
Although specialty coffee, value-added coffee still forms a smaller share of total exports, it remains one of the fastest-growing segments. Trade agreements such as the India–UK and India–UAE FTAs have reduced tariffs on these products to zero, creating a level playing field with competitors like Vietnam and Brazil. The Board continues to support this growth through export incentives, international promotions, and campaigns that highlight India’s diverse regional flavors.
Instant and processed coffee continue to perform strongly, while the specialty sector is steadily expanding its presence. Value addition is no longer viewed only as a trade objective; it has become a way to strengthen the entire supply chain, ensuring that growers, processors, and exporters all benefit from a more diversified and resilient industry.
At home, India’s coffee culture has grown rapidly. Domestic consumption has doubled from about 50,000 metric tons in the early 2000s to nearly 100,000 in 2025. New cafés, brands, and small roasters are reshaping how Indians experience coffee. This steady rise in homegrown demand has reinforced the Board’s push for local value addition, encouraging more roasting, blending, and packaging within the country and turning domestic consumption into a driver of quality and innovation.
Mr. Reddy fondly recalls the active participation of all stakeholders during the G20 summit, highlighting the memorable coffee experiences and tastings shared with global leaders.
The EUDR Challenge
Among all the hurdles Indian coffee faces today, one towers above the rest: the European Union’s new Deforestation Regulation. Introduced in June 2023, it demands that every bag of coffee entering Europe can be traced back to land proven to be deforestation-free. Originally, companies were expected to comply by December 2024, but the deadline has since been staggered: December 2025 for large operators and June 2026 for micro and small enterprises.
For India, there is no market more critical. Nearly half of its coffee exports, about 46 percent worth close to 917 million dollars in 2024–25, find their way to Europe. The EU alone absorbs 60 percent of India’s green coffee exports and 8 percent of its roasted and ground shipments. Maintaining and strengthening this gateway remains crucial for India’s continued global success.
Coffee is covered under the EUDR, with only Chapter 09 currently included under its purview, while soluble coffees are not yet regulated. India, however, holds a rare advantage. Under the EU’s benchmarking system, it has been placed in the “low-risk” category, making compliance less cumbersome. For estates under four hectares, only simple geolocation data is needed. Larger estates must provide detailed boundary polygons. Geolocation of the estate or a polygon outlining the estate is sufficient to meet the EUDR compliance requirements.
Dr. Reddy expresses that 99% of coffee holdings are with small holders and all the shipments contain pooled coffee from different producers, it becomes a challenging task for placing a traceability and compliance to the provisions of new regulation.
The Coffee Board has been quick to act. Through the India Coffee App, compliance is being built step by step. Phase one has already integrated the Coffee Grower Registration Module. In Phase two enabled growers to generate geolocation or polygon data. Phase three will add a full traceability module, creating a seamless digital pathway for exporters.
Behind the scenes, the Board is working towards building blockchain-enabled traceability across the entire value chain.
But Dr. Reddy is quick to stress that compliance can’t rest on the Board alone. It will take collaboration among growers, institutions, and exporters to maintain India’s reputation as a reliable and sustainable coffee origin.
Strengths and Weaknesses of Indian Coffee
When Dr. Reddy assesses India’s standing in the global coffee arena, he often turns to a familiar framework: strengths, weaknesses, opportunities, and threats. It’s a way of laying bare both the promise and the challenges of the sector.
The strengths are undeniable. The traditional coffee states, Karnataka, Kerala, and Tamil Nadu, still account for an impressive ninety-five percent of the country’s output. Diversity is another hallmark: India produces everything from commodity beans to specialty lots, from GI-tagged origins to some of the world’s finest Arabicas and Robustas. In fact, Indian Robustas command premiums in international markets, while Arabicas hold their own under the “Other Milds” category. The other strength is of value addition, where India is now positioned as one of the major manufacturers and exporter of instant/soluble coffee globally.
But challenges remain. Production and productivity have shown only limited growth in recent years, with little scope for expanding cultivation into new areas. Arabica yields, in particular, have been declining, and the hilly terrain of most coffee regions makes large-scale mechanization difficult. Much of the work continues to depend on manual labour. Globally, Indian coffee still lacks a strong brand identity and is often used as a component in blends rather than being marketed for its distinct origin. Within the country, consumption is rising, though it remains modest compared to many other coffee-producing nations.
On the horizon, however, lie opportunities. With better productivity, expansion of coffee cultivation especially in non-traditional coffee regions like Araku Valley, Odisha and north eastern parts of the country, improved post-harvest processing, and stronger branding, Indian coffee could carve out its own space in international markets. Rising domestic demand adds another reason for optimism.
Yet the threats are real and urgent: unpredictable weather, pests, volatile prices, and fierce competition from other origins. To counter these risks, the Coffee Board has stepped in with support for replantation, quality improvement, eco-certification, modernization of curing units, infrastructure for roasting and packaging as well as export promotion. The aim is clear: encourage value addition, drive quality improvements, and unlock the specialty markets that can give Indian coffee the recognition it deserves.
India evolved as one of the major suppliers of instant coffee globally, contributing to the overall growth of exports.
- Dr. Babu Reddy
A Vision for the Future
The Coffee Board’s vision for the future focuses on increasing production, improving quality, value addition and ensuring long-term sustainability. Mr. Reddy remembers the involvement and collaboration of all stakeholders during the World Coffee Conference held in Bengaluru, which reflected the shared commitment to advancing India’s coffee sector. It aims to strengthen every stage of the value chain so that Indian coffee remains competitive, responsible, and distinctive in global markets.
To achieve this, the Board continues to promote and better agronomic practices that raise productivity through suitable development support, research and transfer of technology. It is also modernizing post-harvest and curing infrastructure to improve consistency and flavor. At the same time, the Board supports eco-certification and sustainable farming methods that protect both soil health and farmer livelihoods.
Digital transformation is another key priority. Through initiatives like the India Coffee App and blockchain-based traceability, the Board is building systems that make the supply chain more transparent and aligned with global standards such as the European Union’s deforestation regulations.
Dr. Reddy notes that the future of Indian coffee depends on collaboration. Researchers, policymakers, growers and other actors in the value chain must work together to balance productivity with sustainability and quality. He believes that innovation and data-driven insights will guide the next phase of growth.
India’s coffee story, he reflects, is now about producing better, not just more. It is a journey built on research, resilience, and shared commitment, one that continues to strengthen both the integrity and reputation of Indian coffee.
D. R. Babu Reddy, serving as Deputy Director (Market Research) at the Coffee Board of India.
Contact:
Dr. Babu Reddy D.R., Deputy Director (Market Research), Coffee Board, Ministry of Commerce & Industry, Government of India, Bengaluru.
Email: ddmr.coffeeboard@gmail.com Mobile: +91 9448225602
