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Arabica coffee price hits all-time high of Rs 15,100 per 50 kg bag
Arabica coffee price hits all-time high
Arabica Parchment coffee price soared to an all-time high of Rs 15,100 per 50-kg bag on Friday in Kodagu and Chickamagalur markets. According to vendors, this was the highest price ever for this coffee variety in 28 years.
Madikeri: Arabica Parchment coffee price soared to an all-time high of Rs 15,100 per 50-kg bag on Friday in Kodagu and Chickamagalur markets. According to vendors, this was the highest price ever for this coffee variety in 28 years.
Normally, this coffee variety commands a price of Rs 10,000-10,500. The cost of Robusta Parchment rose to Rs 6,000 per bag. The last time when Arabica coffee reached the highest price was in 2014 at Rs 11,000 to Rs 11,800 per bag. The price saw a downward trend and touched Rs 7,000. Now Arabica Cherry costs Rs 5,800-Rs 6,200 a bag while the cost of Robusta Parchment ranges between Rs 6,200 and Rs 6,800 per bag.
According to market experts, the heavy snowfall in Brazil, the largest coffee growing country in the world is the reason for soaring prices. It is said that snowfall damaged more than 10 percent of Arabica crop this year and it takes at least 3 to 4 years to recover from the loss.
In spite of the Arabica Parchment price hitting all-time high, the mood among coffee growers is hardly upbeat as they are in a distress owing to the after-effects of Covid-induced lockdown and untimely rains that played havoc with their crops. The untimely rains in November and December have damaged 30 percent of the crop in the three coffee-growing districts.
During July weekend the Arabica Coffee price soared to Rs 14,700 per a 50-kg bag, but it lasted just a few hours before crashing to the modest price of Rs 11,200- Rs11,800. Coffee growers are being allowed to sell their produce in the open market since 1992, following angry protests. This has greatly improved the economic condition of the growers.
December to April is the time for coffee harvesting and 90 percent of growers sell the produce before rainy season due to the price fluctuation and lack of warehouse facilities.
Arabica Coffee's share of the country's total production is less than 30 per cent, while Robusta accounts for 70 per cent. The total annual coffee production in the country is approximately 3.6 lakh tonnes, of which Robusta is 2.5 lakh tonnes and Arabica 1.1 lakh tonnes. The tiny district of Kodagu accounts for 30 percent of nations coffee production with 1.2 lakh tonnes of which Arabicas share is 25,000 tonnes and the rest is Robusta.
Speaking to The Hans India, a coffee exporter and promoter of AWIT Innovations (P) Ltd in Kushalnagar, Rajiv Kushalappa said that the price fluctuations are likely to increase in the near future due to prevailing international market conditions. According to him, Ratan Machaiah, a coffee grower in Gonicoppa, the cost of production of coffee has increased significantly in recent years and growers are in distress. The wages of labourers, fertilisers, pesticides, etc., have doubled over the past decade, but price remains the same. The growers are gambling on unpredictable climatic conditions year after year.
