Vietnam and Brazil both saw some of their worst droughts this year, which led to large drops in coffee production
Robusta coffee bean prices have soared and equaled premium arabica beans in India as drought has impacted production of the crop in major producers like Brazil and Vietnam, planters have told Down To Earth (DTE).
The prices and demand for Robusta coffee has peaked at Rs 10,000 for a 50 kg standard bag, from its conventional Rs 4,000-5,000 per bag. The latter price has been in place for nearly a decade.
Arabica is considered superior to Robusta for its creamy layer. In India, coffee is grown primarily in southern Karnataka’s Kodagu (Coorg) region, besides Kerala and Tamil Nadu.
The reason for high prices is the demand for export in the international market. Other coffee-growing countries like Vietnam, Brazil, Indonesia, Columbia, Ethiopia and others have reported a drop in production due to droughts in the backdrop of El Nino, said A A Chengappa, vice chairman of Kodagu Planters’ Association.
According to news reports, Vietnam, the second-largest coffee producer in the world, has seen a drop in production by about 20 per cent, after experiencing its worst drought in a decade. The drop in production increased prices by about 15 per cent.
In Brazil too, coffee production dropped by about 15 per cent after drought conditions impacted plantations and increased costs by about 40 per cent in some areas.
Chengappa said demand for Indian coffee increased due to its unique taste. “In India, coffee is grown in the shade and in a mixed cropping pattern. This gives it a unique taste as it grows among diverse crops, under greenery and with higher carbon sequestration area,” he said.
He added these are the reasons why prices of Indian robusta coffee beans have increased by 50 per cent.
Apart from demand from the international market, increasing labour costs, input costs and human-elephant conflict leading to losses are also some reasons as to why coffee prices have increased in recent years, according to Chengappa.
India contributes about 15 per cent of the world’s coffee. Most of it (about 70 per cent) comes from Karnataka alone. The state’s primary coffee-growing areas include Chikkamagaluru, Hassan, Madikeri and Kodagu, according to Chengappa.
Himanshu Nitnaware
