Hike in price provides relief for coffee growers

Hike in price provides relief for coffee growers

International coffee prices rebounded for the last two weeks, after declining in the month of February.

Growers are looking at the market with optimism. The increase in the prices has raised the hope of the farmers in the coffee-growing belt of the state. The downward slide in coffee prices last February had triggered worries among the growers. The prices had touched a five-year low with Rs 2,600 per 50-kg bag of Robusta coffee cherry and Rs 6,500 per 50-kg bag of Arabica parchment. Now, the price of Robusta coffee has touched Rs 3,300 per 50-kg bag and Rs 8,200 per 50-kg bag of Arabica parchment.

The estimate of low coffee yield at global-level was the reason behind the rebound in world coffee prices. According to an estimate, the major Robusta coffee growing countries of Vietnam, Brazil, Indonesia and India have witnessed 10% fall in the yield.

Espírito Santo, the highest Robusta growing area in Brazil, has seen a decline in the yield. As a result, the price of Robusta is moving on an upward trend.

Deficit rainfall in Vietnam, Indonesia, Brazil, Columbia and African countries has affected the coffee yield. The rise in temperature during summer and deficit monsoon have affected the coffee production in India as well. “If the weather is conducive, then each bunch will have 55 to 60 beans. This year, however, each bunch has only 40 beans,” said coffee grower Ajith Prabhu in Kalasa.

The harvesting of Robusta coffee in Vietnam and Indonesia completes by November. The exact rate of the Robusta coffee will be known by then. If the production of the Robusta coffee fails to touch the expected level, then the price is likely to touch USD 200 a tonne.

The coffee industry has been suffering due to an increase in cost of production and shortage of labourers in the last few years. The increase in the price of coffee in the international market will improve the economy in coffee growing districts, feel the growers.

DH Newsletter Privacy Policy Get top news in your inbox daily
GET IT
Comments (+)