Coffee Prices at 15-Year High, Growers Thrilled

Coffee beans are experiencing a 15-year high due to a global shortage in crop production, providing relief for growers in Kerala, Chikkamagaluru, and parts of Hassan. The price surge is primarily influenced by Brazil, the world’s leading coffee exporter, and extreme weather conditions. Despite poor yields, coffee production is expected to reach 3.54 lakh tonnes, a marginal increase over last year’s 3.52 lakh tonnes.

Karnataka dominates the country’s coffee business, accounting for 71% of overall production. Major export markets for India’s produce include Italy, Belgium, Germany, and Russia. Over the past decade, growers have struggled with low prices and high production costs, exacerbated by labor shortages and diseases. Many small and marginal growers abandoned cultivation and diverted their efforts towards real estate, tourism, or more lucrative crops like arecanut and pepper.

Trade traders say the local market is yet to reflect the increase in overseas prices. Price cartelization by local buyers limits earnings and quality issues, and growers say that the current price surge won’t compensate for years of losses. They expect prices to rise in hotels, restaurants, and coffee shops in the second half of the year.

Experts predict a potential decrease in demand for coffee as supply increases in January and February, although they anticipate an increase later in the year.

Read More @ Times of India

Suggested Reading