Price Rise At Cost of Green Beans

Coffee lovers will face a price hike, as coffee prices will increase significantly. A sharp rise in the cost of green beans has driven the price surge. It is affecting the retail prices of roasters' coffee. The adverse effects of climate change in major coffee-producing countries like Brazil and Vietnam have disrupted coffee cultivation, leading to reduced production and a tightening supply.

According to Perikal M Sundar, Chairman of the Indian Coffee Trade Association. The auction prices for coffee have more than doubled since the beginning of the year. Domestic prices are mirroring global trends, which have been rising steadily due to concerns about supply. Traders used to price Robusta coffee much lower than Arabica, but they now price both varieties at similar levels.

• Robusta prices have surged from 2,40 USD per kg to around 5,04 USD per kg,
• Arabica has increased from 3,48 USD per kg to 5,58 USD per kg for some grades.

Retail Prices Set to Increase

Sundar, who runs Modern Coffee Company, a roasting unit in Bengaluru, mentioned that maintaining the current prices has become increasingly difficult. As a result, he has had to increase the selling price of coffee powder by at least 1,20 USD per kg this week. The blend and chicory content determine the price of roast and ground coffee powder, but experts expect further increases. Popular roast and ground blends, currently priced between 7,20 and 9,60 USD per kg, could see an increase of up to 1,20 USD per kg in the near future.

Instant Coffee Prices to Rise Soon

Experts expect instant coffee prices to increase shortly, along with roasted coffee. According to trade sources, coffee producers are facing tight supply conditions. Along with limited stock remaining until the next crop arrives in December-January. Srikanth Rao, Director of Buyers Coffee, confirmed that raw coffee prices for both Arabica and Robusta have risen, forcing producers to increase prices. Rao indicated that there is no chance of raw coffee prices decreasing anytime soon due to ongoing supply shortages.

Traders will implement the fresh price hike of 10-15% in the coming days. Although auction prices have nearly doubled since the start of the year. Roasters have been cautious in raising prices for consumers. This upcoming increase will be the second one this year, following a previous hike in May. Nearly every coffee company has been forced to raise prices in response to the rising costs.

India's Coffee Production and Exports

India produces approximately 0.35 million tonnes of coffee annually, with domestic consumption estimated at around 0.10 million tonnes. The remaining production is primarily exported, with Europe being the main market. As global supply shortages persist, the coffee industry in India is under pressure to meet both domestic and international demand.

Conclusion: Coffee Prices Set for Another Increase

With rising raw coffee prices and tight supply conditions, coffee prices are set to increase by 1,20 USD per kg or more, impacting both roast and instant coffee products. Consumers can expect another price hike in the coming days, driven by global supply disruptions and increasing costs for producers.





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