We can see a burgeoning café culture in urban areas, along with higher disposable incomes. Plus, consumer lifestyles have also evolved. Still, India’s per capita coffee consumption is lower (70 grams annually) compared to the global average of 1.3 kilograms.
So, this indicates a potential growth opportunity. Therefore, the government is also coming up with several policies to support the domestic coffee sector. There is a 100% import duty on foreign coffees, which protects local farmers because competition will not be at that level. However, Indian consumers will also not get diversity in their coffee choices. It has created a double-edged scenario.
Overall, we should appreciate the 100% import duty initiative by the government, as this will control the competition. Meanwhile, the country has to balance overall innovation and diversity.
