Centre launches INR 49.48 crore Mission Coffee project to boost cultivation, processing, tourism, and farmer incomes in Nagaland
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DIMAPUR — The Ministry of Development of North Eastern Region (DoNER) on Monday launched Mission Coffee of Nagaland and a pilot project titled ‘Cluster-based Coffee Value Chain Development in Nagaland’ with a total investment of INR 49.48 crore, aimed at developing an end-to-end coffee value chain in the state.
The project was virtually launched by Union Minister for DoNER Jyotiraditya Scindia from New Delhi in the presence of Chief Minister Neiphiu Rio.
The initiative will be implemented through two pilot clusters—Tuophema in Kohima district for Arabica coffee and Ghotovi in Niuland district for Robusta coffee.
According to the Union minister, the project includes hi-tech nurseries, expansion of coffee cultivation over 400 hectares with terracing and soil conservation measures, washing stations, roasting and grinding units, and coffee tourism components including farm-stay experiences.
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Scindia described the launch as a “historic day” for Nagaland’s coffee sector and said the Centre had identified coffee cultivation as Nagaland’s comparative advantage after exploring sector-specific strengths for Northeastern states under the Viksit Bharat 2047 vision.
Referring to the state’s coffee potential, Scindia said Nagaland possesses favourable altitude, shade-farming conditions, and opportunities in processing, branding and exports.
However, he noted that farmers currently receive only a limited share of the final market value and said the project seeks to improve earnings through processing infrastructure, export-oriented strategies and tourism-linked activities.
Scindia said the project is financially viable, with an Internal Rate of Return (IRR) of 15.4%, a positive Net Present Value (NPV), and an estimated payback period of around eight years.
He also said the initiative is expected to raise average coffee yields from 200–300 kg per hectare to nearly 800 kg per hectare while generating employment opportunities in cultivation, processing, roasting, barista training and tourism.
Addressing the programme, Rio said coffee cultivation has evolved from an alternative crop into what he described as “a vehicle for sustainable prosperity” in Nagaland.
Rio said the state has made significant progress since the revival of coffee plantations in 2014–15. According to him, coffee production in Nagaland increased from 21 metric tonnes in 2021–22 to nearly 73 metric tonnes in 2024–25.
He said the state now aims to bring 50,000 hectares under coffee cultivation by 2047 under the Viksit Nagaland vision.
The chief minister said the project was designed to support that expansion through focused interventions in selected clusters. He said Tuophema and Ghotovi were chosen as pilot clusters to serve as “living models of excellence” for coffee cultivation and value addition.
Rio said the project would establish hi-tech nurseries to ensure quality planting material and modern post-harvest infrastructure, including nine washing stations and roasteries, to enable value addition at the farm gate.
He added that branding and marketing initiatives under the project aim to position “Coffees of Nagaland” as a premium, traceable, single-origin brand in national and international markets.
Highlighting the tourism component, Rio said the project integrates experiential coffee tourism through farm stays where visitors can witness the journey “from cherry to cup”.
Rio also said the project would contribute to reducing dependence on jhum cultivation and help conserve forests and the state’s fragile hill ecology.