In this episode of the State of Economy Podcast, businessline’s Subramani Ra Mancombu speaks with Praveen Jaipuriar, CEO of CCL Products India Limited, as they discuss the recent surge in coffee prices, which have increased by over 30% since the start of 2025. The conversation highlights the factors driving this price rise, including climatic challenges in major coffee-producing countries like Brazil and Vietnam, which together account for 60% of the global supply.
Jaipuriar explains that the coffee market has been facing persistent inflationary trends due to crop shortages and the ongoing impact of climate change, which has caused a disruption in the supply chain. Despite high prices, global demand for coffee remains strong, further driving up the cost.
For Indian coffee growers, these developments have meant higher prices for their produce, benefiting them with record prices for their crops. However, Jaipuriar notes that this trend may last for another year or so, as it takes time for the supply chain to correct itself due to the long coffee crop cycle.
The conversation also delves into the future outlook for the Indian coffee industry, particularly in terms of exports. Jaipuriar explains that while the volume of exports has remained relatively stable, the value of coffee exports has surged due to higher prices. To truly capitalise on this opportunity, Jaipuriar emphasises the need for India to increase its coffee plantation acreage and enhance the visibility of Indian coffee globally, as the country is not as well-known for its coffee as it is for tea.
Another key topic covered is the potential for expanding domestic coffee consumption in India, which currently exports two-thirds of its coffee. Jaipuriar notes that the younger generation is increasingly turning to coffee, especially in cafes and vending machines, and predicts that coffee consumption will grow significantly in the coming decades.
However, he also highlights the challenge of rising input costs, particularly labour costs, which could impact the pricing and accessibility of coffee in the domestic market. Tune in to gain a comprehensive look at the dynamics of the coffee market and how India can adapt to global trends to enhance its position in the coffee industry.
(Host: Subramani Ra Mancombu Producer: Prethicshaa Gurumoorthy)
About the State of the Economy podcast
India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders.
