From beans to BMWs: Karnataka’s coffee growers smell the riches

On a recent evening, the parking lot of a resort on the outskirts of Gonikoppal, a sleepy town in Karnataka’s Kodagu district, looked more like the forecourt of a luxury car showroom. Range Rovers, Audis, BMWs, Mahindra XUV700s, Thars — you name it, they were all there.“This is something we see every day now,” said Chendrimada Ganapathy, a local coffee grower, gesturing towards the gleaming vehicles. He wasn’t exaggerating. The owners of the high-end cars were attending a grand Kodava wedding — an event that has become a showcase of affluence in this coffee-rich district.Spending spreeWhile much of rural and semi-urban India tightens its belt amid rising prices, Kodagu — earlier called Coorg — and Chikkamagaluru are defying the trend. From designer homes and luxury SUVs to smart electronics and exotic vacations, people are spending like never before.“Growing coffee is in our blood,” said Chandapanda Anupama Poovaiah, a third-generation planter near Virajpet, about 260km from Bengaluru. “There were years we barely broke even. Now we can breathe. Yes, we are upgrading our lives — but we have earned it.”Behind the boom is a combination of robust global demand, weakened rupee and supply troubles in Brazil, the world’s largest coffee producer. The result: a dramatic spike in earnings for coffee-growers.“This is possibly the highest price realisation in two decades,” said BK Subramanya, agricultural economist and a coffee planter from Chikkamagaluru. “Even with weather-hit yields, growers are seeing big gains. It’s sparked a wave of asset creation and luxury spending.”Kalimada Sanju Somaiah, another third-generation grower, said this season has been a game-changer. “We got ₹12,000-15,000 per 50kg bag of Robusta cherry this season. Just two years ago, it was barely ₹5,000. For nearly 10 years, we were stuck in the ₹3,000-5,000 range. The last two years have changed everything.” medium120451561 medium120451567Retail to housing, it’s boomtimeThe impact of this windfall is visible everywhere — from traffic to retail to housing. “In Kodagu, coffee isn’t just a crop — it’s currency,” said Chandapanda Prajwal Poovanna, another local grower. “When prices rise, the impact is immediate and widespread. It touches everything.”The district’s Regional Transport Office reported 15,284 new vehicle registrations in 2024, up from 12,730 in 2023 and 11,115 in 2022. Passenger car registrations alone went from 2,737 in 2022 to 4,189 in 2024. Early 2025 figures show 4,628 registrations, with a projected 20% rise by year-end.Officials have also noted a 20% jump in registration of vehicles priced above ₹30 lakh, indicating a clear shift in consumer preferences. “In March alone, we sold 300 SUVs above ₹30 lakh. Fifty of those went to buyers from Kodagu,” said Bhaskar C, CEO at Anant Cars, a Mahindra dealership in Bengaluru. “This was unheard of a few years ago. It’s not just the numbers; it’s the scale of spending.”It isn’t just cars. Coffee planters are spending on high-end bungalows, international holidays and state-of-the-art electronics. “Smart TVs, air fryers, dishwashers, things which hardly had any demand two years ago are moving quickly here,” said Priya K, manager of a major electronics store in Virajpet. “We have even sold espresso machines worth over ₹40,000, and some buyers paid entirely in cash.”Manoj M, who runs an electronics store in the same town, echoed the sentiment. “I sold six 85-inch OLED TVs in a week. This was unthinkable earlier. Buyers want the best — be it the latest iPhone, or home theatre systems of ₹5 lakh or more.” medium120451605Jewellers from Bengaluru and Mysuru now make frequent private visits to Kodagu, while architects and interior designers are getting a growing number of high-end requests.“We now get more luxury orders from Kodagu than from Mysuru,” said interior designer Anjali Rao. “They are clear — minimal, elegant and tech-forward.” According to her, the demand for architect-designed villas in plantations has increased sharply, with clients spending big on renovation and modern features.Estate owners are also funnelling their windfall into real estate, transforming colonial homes and building plush retreats. Some are turning to tourism, converting family estates into boutique homestays.“There’s a new homestay or private villa coming up every other week,” said Rajendra Kumar, a real estate consultant in Kushalnagar, a city in Kodagu district. “Prices in places like Madikeri, Virajpet, Gonikoppal and Siddapura have jumped between 20% and 35% over the past year. People are buying land not just for expansion but to cash in on the tourism demand.”TL Praveen, the young owner of a resort and coffee estate, is building four-bedroom row-houses with a mini pool attached to each on the Kodagu-Mysuru border close to Byalkuppe, a Tibetan settlement. “The demand is insane. We are booked for the next six months, mostly by clients from Kodagu who are based in Bengaluru and Mysuru,” he said.“These aren’t rustic retreats,” said S Sharath, a realty consultant. “Planters want modernity with colonial architecture, and they are getting it.”Travelling abroadInternational travel has also become big. Travel agencies in Bengaluru and Mysuru have recorded a 30-40% rise in bookings from Kodagu in the past six months. “It’s not just holidays — it’s curated luxury,” said Shreya P, who runs a bespoke travel agency. “Wine tours in Tuscany, yacht charters in Greece, chasing the Northern Lights — our coffee clients want the experience, not just the ticket.”The wealth is trickling down, too. Daily wages have increased by nearly 20% in two years, with more plantation workers now able to afford their own two-wheelers. “There is more money in hand now, especially during the harvest and post-harvest seasons,” said Kala, a labour contractor from Thithimathi. “Many workers are choosing to buy their own two-wheelers instead of relying on shared transport.” medium120451585‘This won’t last forever’Despite the euphoria, seasoned growers remain cautiously optimistic. “This won’t last forever,” said Ballachanda Belliappa, a senior planter from Madikeri. “We will enjoy it, yes — but with one foot on the ground.”Agricultural scientists are urging planters to think long-term. “Unless planters diversify, or reinvest in productive assets, this surge can be short-lived,” said CP Manjula, an agriculture scientist at the University of Agricultural Sciences, Bengaluru. “Many families are already taking the advice seriously. Some are exploring eco-tourism, artisanal coffee roasting, agritech and solar energy as alternative revenue streams.”“We have seen good years and bad ones. Coffee is a global commodity. A frost in Brazil or a port shutdown in Vietnam changes everything,” said 53-year-old Priya Cariappa, a planter. “So, while we are enjoying the gains, most of us are also saving and investing in things that will help in the lean years.”Shruti Cariappa, a younger generation planter who returned from Bengaluru to manage her family estate near Pollibetta, said the focus is on sustainability. “We are not just buying gadgets. We are investing in drip irrigation, replanting shade trees, and even experimenting with intercropping. The idea is to be better prepared when the cycle turns.”As prosperity grows, environmental concerns are also surfacing. Conservationists warn that unregulated development could damage Kodagu and Chikkamagaluru’s fragile ecosystem.“We are seeing hilltops being cleared and wetlands filled for private villas and resorts,” said Col (retd) Subbaiah, a member of a local conservation group. “This is a biodiversity hotspot. We cannot afford to turn it into another tourist ghetto.”The Karnataka finance department is happy with the boom. GST collections from Kodagu rose 16% in the last fiscal, thanks to growth in hospitality, automobile and electronics sales. “This is a welcome outlier,” a senior department official said. “We are analysing whether this is a one-off result of global coffee prices or signals a structural shift in the region’s economy.”