Costlier Mornings for Coffee Lovers

Coffee lovers, brace yourselves—your daily cup is about to get more expensive. A global coffee shortage has driven up prices, with key producers like Brazil and Vietnam struggling to meet demand. In response, coffee roasters and manufacturers in India are preparing to hike prices, making premium blends significantly costlier in the coming weeks.

Soaring Prices in the Coffee Market

Raw coffee prices in India have surged, mirroring global trends. Arabica parchment has now surpassed USD 6,60 per kg, while Robusta parchment is trading at USD 5,67 per kg. According to Perikal M. Sundar, Chairman of the Indian Coffee Trade Association (ICTA), auction prices have more than doubled since early 2024, with Arabica parchment prices alone increasing by USD 3,84 per kg in just one month.

Robusta cherry prices have also skyrocketed, now exceeding USD 12 per kg, doubling over the past year. These rising costs are squeezing traders and businesses, making further price hikes inevitable for consumers.

Higher Costs for Consumers

For coffee drinkers, the impact of rising prices will soon be evident. Premium roast and ground blends, currently selling for USD 10,56–10,80 per kg, are expected to cross USD 12 per kg in the coming days. The last price adjustment in October 2024 had already raised prices by USD 1,20 per kg, pushing premium coffee blends into the USD 8,40–10,80 per kg range.

Sundar noted that the coffee trade body is planning a meeting soon to decide the next round of price hikes. Meanwhile, discussions are underway on whether to request government intervention, including imposing export duties to help stabilize domestic supply and prevent further price surges.

Rising Global Coffee Prices Adding Pressure

The volatility in global coffee markets is another major factor driving up costs. Vietnam, the world’s largest Robusta producer, has faced production setbacks, further tightening supply. Praveen Jaipuriar, CEO of CCL Products (India) Ltd, confirmed that Indian coffee prices are closely following these global trends and have now reached all-time highs. The company has already raised its B2C (business-to-consumer) prices 2-3 times over the past year to manage rising costs.

At a recent investor call, Suresh Narayanan, Chairman and Managing Director of Nestlé India, stated that coffee prices have experienced super inflation, increasing by 75% between 2023 and 2024. He warned that if this trend continues, more price hikes will be necessary as companies struggle to absorb the escalating costs.

Conclusion: One Will Pay Higher Coffee Prices!

With global supply constraints and rising production costs, coffee prices are expected to remain high for the foreseeable future. Indian traders and manufacturers will closely monitor global weather conditions and supply trends in key coffee-producing regions. If production issues persist, another round of price hikes may be inevitable, making coffee an even pricier commodity in 2025.





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