Dip in coffee price worries growers in Chikmagalur district

Dip in coffee price worries growers in Chikmagalur district

There has been sudden decline in the price of coffee. The coffee had registered all time high price and had brought a ray of hope among the growers recently. However, the fall in the price has worried the growers.

When the Arabica parchment had reached Rs 10,000, the growers had not sold it anticipating increase in the price. Even the buyers too thought that the coffee price would increase. As a result, 95 per cent of coffee are still lying in the godown unsold.

The increase in the price of coffee had brought smile on the face of  estate labourers.

Labourers were fetched from far off places to harvest coffee. There was steep fall in the price of coffee from 1996 to 2002. Now, the prices have been slashed by Rs 2000, says coffee grower Ashok Soorappanahalli. Arabica parchment was fetching Rs 10,900 per bag (50 kg) and cherry for Rs 5500. However, on Saturday the price fell to Rs 8,850 for Arabica parchment, Rs 4,500 for cherry, Rs 2,550 for Robasta cherry and Rs 5,350 for Robasta parchment.

Grower Ashok said “I did not sell coffee when Panchami coffee curing was ready to pay Rs 11,000 for parchment coffee bag. The steep fall in the price has made me to worry.

The price of fertilisers and labour charge has increased over the years. If the coffee price is not stabilised, then many coffee plantations will remain unused in the future.”

A grower has to spend Rs 60,000 to Rs 70,000 for the maintenence of one acre arabica coffee plantation. If a grower fetches Rs 80,000, then he will earn a profit of Rs 10,000.

However, what would be the condition of growers who have borrowed loan? he asked. 

It is said that bumper crop is expected in Brazil. At the same time, bankers are not financing the buyers in Europe which has lead to steep fall in the price of coffee in the international market.