Arabica parchment coffee hits record price of Rs 10k per bag

Coffee growers are happy as the market rate of Arabica parchment has reached a record rate of Rs 10,000 for a bag of 50kg. The rate has been the highest in the last eight years.

As on Wednesday, a 50kg bag of Arabica Parchment coffee was sold between Rs 10,400 to Rs 10,500, which according to the vendors, is the highest rate for Arabica parchment.

The cost of Robusta Parchment has increased to Rs 7,000 per bag. The last time when Arabica coffee reached the highest rate was in 2014. It was Rs 9,600 to Rs 9,800 per bag then. Later, the price moved downward and had touched Rs 6,000.

Arabica cherry costs Rs 4,000 per bag while the rate of Robusta cherry is Rs 3,200 to Rs 3,400 per bag.

Growers in Kodagu, Chikkamagaluru and Hassan have expressed their happiness on the improved market rate of coffee, despite problems of shortage of labourers and feasibility issue in the maintenance of the plantation.

During February, the market rate of a 50kg bag of Arabica Parchment coffee was Rs 8,500 to Rs 9,000 but it reached Rs 10,000 all of a sudden in March.

The growers who had stocked coffee have been selling it in the curing centres. Those who sold coffee in January at a considerably less rate are repenting their decision. In some places, vendors are purchasing coffee at the doorstep of the growers, by paying a higher rate compared to the curing centres.

The vendors said that the rates of Arabica parchment might increase further. Expecting the same, the growers who have stored coffee in ABC and other curing centres have decided to sell coffee after it hits an all-time high.

The increase in the rate of coffee was due to a significant decrease in production in Brazil and Columbia. There was a plunge in the production of coffee in Chikkamagaluru, Kodagu and Hassan districts as well, owing to floods. This has created an increase in demand.

Even though the market rates have increased, the quantity of coffee production is significantly less compared to previous years. The growers who grew 50 bags of coffee in the past have ended up producing only 10 bags of coffee.

“The coffee plants have been damaged due to the water-logging of the plantation. It might take another four years to restore the coffee plantations to its original condition,” said coffee grower Nanaiah.

Coffee vendor Abdul said that around 60% of coffee growers have sold their coffee. Those who had stored coffee have reaped benefits.