The recent sharp rise in global coffee prices has affected the price premiums of speciality coffees.
Speciality coffees are high-quality coffees that stand out from regular ones in both appearance and taste. In the past, Indian speciality coffees typically sold for up to 25% more than regular coffee, according to growers.
“This year, the premiums for speciality coffees have dropped significantly because regular coffee prices are at their highest levels in years,” said D.M. Purnesh, President of the Speciality Coffee Association of India. “Now we’re only able to get about a 10% premium, unlike the 25% we used to get.”
Producers of speciality coffee usually negotiate and sell their beans at a set price higher than regular coffee. Also Read | India’s Coffee Exports to the US May Be Hit by 26% Tariff, Say Exporters
Speciality coffee is grown at higher elevations and comes from single-origin estates. It involves specific coffee varieties, unique farming methods, and special processing techniques. According to the Coffee Board, what makes speciality coffee different is its clearly identified origin, careful cultivation, selective picking, unique processing, and special handling and branding.
There are no official numbers on how much speciality coffee is produced in India, but Purnesh estimates it’s around 5% of the country’s total coffee production. “Only a small number of growers are involved in producing speciality coffee,” he added.
Speciality coffees from India are mainly exported to the European Union, the United States, Japan, and other countries.
India is the world’s seventh-largest coffee producer, with an annual output of around 3.6 lakh tonnes. For the financial year ending in March 2025, India’s coffee exports hit a record $1.8 billion, driven by high global prices. These price hikes are largely due to supply issues in major coffee-producing countries like Brazil and Vietnam.
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