Coffee production in India is dominated in the hill tracts of South Indian states, with the state of Karnataka accounting 53% followed by Kerala 28%and Tamil Nadu 11% of the production of 8,200 tonnes. So, statement 1 is NOT correct. Indian coffee is said to be the finest coffee grown in the shade rather than direct sunlight anywhere in the world. The two well-known species of coffee grown are the Arabica and Robusta. So, statement 3 is NOT correct. Almost 80% of the country's coffee production is exported. Of that which is exported, 70% is bound for Germany, the Russian Federation, Spain, Belgium, Slovenia, United States, Japan etc. So, statement 2 is correct.