Coffee stands next only to tea as an admired beverage in the world, as well as in India. If tea belongs to the northeastern part, coffee is confined to the southwestern part of the world. Unlike tea, coffee holdings are less than 10 hectares each.

Coffee grows in tropical highlands at heights varying between 900 and 1800 metres above sea level. In India they grow well on laterite soils of Karnataka. In 1950-51 the area under coffee was 91,000 hectares with a production of 25,000 tonnes. By 1997-98 region under coffee was 400,000 hectares and production was 200,000 tonnes. The yield also increased to 818 kg per hectare. In 1997-98, coffee exports were 147,000 tonnes, fetching 436 million U.S. dollars- even more than tea.