Among the plantation crops, coffee contributes significantly to the nation’s economy, in addition to earning substantial foreign exchange for the country. Indian coffee production was about 3 lakh tonnes and exports were 2,13,472 tonnes in 2001-02. The European Union and Russian Federation were the major importers of Indian coffee. By using Markov chain model, direction of trade and changing pattern of Indian coffee export were analyzed. Using the estimated transitional probabilities, the export of coffee to various destinations was predicted by multiplying the same with the respective market shares of the base year. It is evident from the results that USA was the most reliable and loyal importing country (loyalty index with the probability of 80 per cent retention of  than any other importing countries, followed by other countries, Russian Federation etc.