It was expected that by the end of this year, the prices of coffee would fall but the situation is almost the same and no significant fall can be seen at present.
Coffee prices have been fluctuating this year but are likely to come down in early 2024. The Karnataka Planter’s Association said that since Brazil has over produced coffee recently, prices of coffee in the global market are falling and soon they are going to fall in India as well.
The association said that in early 2023 coffee production was less not only in India but also in other coffee producing countries like Brazil, Columbia and Vietnam. This has been attributed to low-yielding crops, shortage of beans, and unpredictable weather conditions.
Mr Krishannath, a member of KPA said, “This situation is good for coffee buyers but not for coffee planters as the selling price of coffee has decreased in the global market. Contradictory to that in August 2023 coffee planters sold coffee at Rs. 6,200 per 50 kg in wholesale markets whereas they sold only Rs. 3,000 to 3,500 per 50 kg in 2022.”
The association further explained that at the beginning of this year, the prices of Arabica coffee sky rocketed, they went from Rs. 60 per Kilogram to Rs. 100 per kg. Some varieties of coffee were sold at Rs. 220 for 500 grams.
Jay a coffee shop owner in Indiranagar said that initially this year Arabica prices increased much more than that of Robusta as Arabica cultivation is more challenging than that of Robusta. He added, “I have been buying coffee beans at an increased price since July 2023.The prices have not come down in the wholesale market, at least for us since July last year when they increased.”
Shivangi a constant coffee consumer said, “I buy ground coffee from the same shop always, earlier they increased Rs 5 for some grounds, I laughed about it with the store owner. But the prices have been the same they have not decreased so far.”
Mr Bidanda Chengappa who owns a coffee plantation said, “Brazil exports almost 50 per cent of its produce to the global markets. When there is optimum production of coffee in Brazil, they leave no chance for any other market to bloom. Therefore, coffee prices are destined to go down in India in the coming year which will definitely affect Indian coffee planters.”
