Indian Coffee Prices Remain Strong As Global Supply is Tight
Growers Call for Stability to Offset Decades of Losses
Indian coffee growers expect prices to remain firm in the near term, bolstered by tight global supply. Despite a steady price uptrend over the past year, growers believe they need sustained stability for 4-5 years to repay debts and recover losses accumulated over the last 15 years. Karnataka, which produces 70% of the country’s 0.35 million tonnes of coffee annually, remains at the forefront of this push for financial recovery.Sahadev Balakrishna, Chairman of the UPASI Coffee Committee, highlighted that low prices and rising production costs, including higher wages, have significantly impacted growers. "We need consistent prices to overcome these financial burdens and restart investments," he said.
Robusta Coffee Prices Surge While Arabica Stays Steady
Domestic coffee prices, especially for robusta varieties, have experienced a significant surge. Robustas rose by 36-48% between January and June 2024 compared to the same period in 2023. In contrast, arabica prices recorded modest growth, rising by 2.3-7.7% during the same timeframe.- Robusta parchment AB prices averaged $4,42 per kg in January-June 2024, up from $3,26 per kg in 2023.
- Robusta cherry AB prices surged to $4,47 per kg from $3,03 per kg, a 48% increase.
Climate Change and Rising Costs Weigh Heavily
Growers are grappling with rising input costs, labor shortages, and the effects of climate change on yields. Excess rainfall in India has further stressed coffee crops, keeping supply limited and prices firm. KG Rajeev, Chairman of the Karnataka Planters Association, emphasized the need for government support to modernize plantations and address these challenges.EUDR Compliance Seek Support
The European Union’s proposed Deforestation Regulation (EUDR) poses another hurdle for Indian coffee growers. Rajeev called for government intervention to promote Indian coffee as shade-grown and EUDR-compliant. He also urged tax exemptions for sustainable practices and infrastructure development. Additionally, the industry seeks removal from the CIBIL framework, arguing that plantations fall under agriculture.Click here to reach our trading platfrom CMBroker
