Farm-gate prices of Arabica coffee has fallen to Rs6,400-6,500 per 50 kg bag from Rs9,500-9,700 per 50 kg bag in Jan 2017.
The decline in rupee against the dollar has also not helped to stabilize farm-gate prices. On the other hand, coffee growers have been hit by rising cost of cultivation, mainly due to an increase in fuel costs and revised wages.
Indian coffee growers fear the prevailing bearish trend in prices to extend into the new crop year starting Oct 2018 on expectations of a significant increase in coffee production in Brazil, Vietnam and India.
The US Department of Agriculture has projected global coffee output to increase by 11.4 million bags of 60 kg each to a record 171.20 million bags in 2018-2019.
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