India Showcases Coffee Potential with EFTA Pact as Exports Seek Premium Market Boost

Speaking at the inauguration, Shri Agrawal underscored the uniqueness of Indian coffee, noting that it is grown sustainably in harmony with forests and biodiversity.

 

On the occasion of International Coffee Day, Commerce Secretary Shri Rajesh Agrawal inaugurated the Coffee Experience Zone and Expo organized by the Coffee Board of India. The event served as a platform to highlight India’s growing strength in coffee cultivation, its expanding export potential, and the new opportunities emerging under the recently signed India–EFTA Trade and Economic Partnership Agreement (TEPA).

Indian Coffee: A Blend of Sustainability and Growth

Speaking at the inauguration, Shri Agrawal underscored the uniqueness of Indian coffee, noting that it is grown sustainably in harmony with forests and biodiversity. He stressed that India’s coffee sector has seen strong momentum, with exports doubling in recent years. Unlike many other coffee-producing regions, India’s plantations are known for their shade-grown, hand-picked, and sun-dried beans, which are increasingly sought after in niche global markets.

The Commerce Secretary emphasized that India must continue to diversify coffee cultivation to keep pace with rising global demand. He also pointed to the growing domestic market, remarking that with India’s fast-expanding middle class, domestic coffee consumption is set to surge in the coming years.

Value Addition and Innovation in Coffee

Highlighting ongoing trends, Shri Agrawal noted that value addition in Indian coffee is on the rise, with entrepreneurs exploring new frontiers in instant coffee, specialty coffee, and premium blends. India, with its reputation as a “land of spices,” holds vast opportunities to innovate by creating unique coffee flavors and blends.

He underlined the need to build “Brand India Coffee”, positioning the country as a strong contender in the premium global coffee market. According to him, moving beyond raw bean exports to higher-value products will help Indian coffee stand out and fetch better returns for growers.

India–EFTA TEPA: Unlocking Premium Market Access

The event coincided with the operationalization of the India–EFTA Trade and Economic Partnership Agreement (TEPA), which is expected to open new doors for Indian coffee in Switzerland, Norway, and Iceland. These markets are known for high coffee consumption, particularly in premium categories.

Under TEPA, EFTA countries have retained 0% import duty on all coffee-related tariff lines (HS Chapter 0901 and select HS 210111 & 210112). This provides Indian exporters a unique opportunity to strengthen their footprint in Europe’s premium coffee segment.

On the Indian side, while raw coffee (Chapter 0901) remains under the exclusion list (with MFN duties retained), preferential tariff reductions are being implemented for HS 210111 and HS 210112 lines. These are staged over time: ‘E7’ category for Iceland and ‘E5’ for Switzerland and Norway, with annual duty reductions from the agreement’s entry into force.

Export Trends: India’s Performance in EFTA

While EFTA represents only 3% of global coffee imports (worth USD 175 million in 2024, led by Switzerland at USD 145 million, Norway at USD 27 million, and Iceland at USD 3 million), the market remains highly lucrative due to its preference for quality.

India’s exports to EFTA nations over the past five years highlight both opportunities and challenges:

Country	2020-21	2021-22	2022-23	2023-24	2024-25
Switzerland	9.59	6.56	6.00	5.04	6.64
Norway	0.69	0.54	1.07	0.80	0.98
Iceland	0.00	0.00	0.00	0.00	0.00
Liechtenstein	0.00	0.00	0.00	0.00	0.00

Despite fluctuations, Switzerland remains India’s top destination within EFTA, while Norway shows gradual improvement. Iceland and Liechtenstein have yet to record trade volumes.

The Road Ahead: Branding, Innovation, and Market Positioning

Experts believe that with EFTA’s zero-duty access and rising global demand for specialty coffees, India now has a chance to position itself as a supplier of premium, sustainable, and innovative coffee. The Coffee Board is expected to focus on branding, farmer training, and linking producers with global buyers.

Shri Agrawal concluded by urging industry stakeholders to seize the opportunity, remarking: “India must not only export coffee but export a brand. By innovating and adding value, Indian coffee can take its rightful place among the finest in the world.”