We have received many heartfelt comments to the article – Coffee Market and Price Update.
CLN has also published many important articles on coffee production and pricing recently –
- EUDR (EUROPEAN UNION DEFORESTATION REGULATION) and its implications for coffee growers of Kodagu
- Global Coffee Prices Swing Amid Climate Shocks and Supply Chain Strains
- The World of Coffee Pricing
CLN Newsdesk has put together a summary of the views expressed by Small Growers.
Given the unpredictable scenario on coffee prices, almost all planters are holding their coffee either in the godown or Coffee Buyers/Traders have not settled yet in anticipation that the market would improve. The moot point is – was this a deliberate mislead?
Sad part is that the small growers whose production is less than 50..bags were also waiting for the “mystical” price increase. The reality is that if the market doesn’t improve, the small growers will experience a big loss.
With no specific intention of blaming any particular office bearer of institutions – shouldn’t there be some sort of mechanism to protect the not-so-educated Small Growers (who form the bulk of growers in Karnataka), to help and protect them in a professional/organised manner? We have The Coffee Board, Karnataka Planters Association, Codagu Planters Association, UPASI, Kodagu Coffee Growers Co Operative Society Ltd, even the Kodava Samajas – all institutions purportedly existing for the welfare and upkeep of the communities they represent.
One of the august Institutions boasts the following tag line in their website –
Empowering Planters,
Enriching Futures;
Advocacy, Innovation, Excellence.
To begin with:
- There could be a weekly advisory on coffee prices – Global and Local. It is a well known fact that the Traders “play” with the small growers.
- Global trends on production of coffee and the futures market.
- Canvas and lobby for minimum support prices; improve budgetary practices and financial literacy for small growers.
Instead of irresponsible Beans to BMW headlines in the media, we are now seeing 6,000 coffee growers in Karnataka stand to lose plantations over unpaid loans. Banks are gearing up to recover their dues by auctioning the plantations under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act. Unless, all stakeholders representing the planters, including small growers, act in a concerted manner with a long term agenda, the already delicate balance that the small growers face with everyone having taken loans will lead to unprecedent consequences and chaos.
It is absolutely important for coffee planters, especially small growers to augment their primary source of income with secondary sources by providing training for undertaking small enterprises in the district. One can only envy the Small and Medium Enterprise(SME), that is undertaken by neighbouring Bunt community with small eateries, cafes, workshops, food processing, shopkeeping and allied businesses. The original inhabitants of Kodagu district are conspicuously missing the opportunity and need to act.
There are many points that come to my mind but I will focus on the Small Coffee Growers who are weathering a storm. Holding back their coffee in hope of higher prices, they met with uncertain buying prices from Traders. The more annoying instances are when Buyers delay settlements, betting on further price fall.
Having said this, Planters have to learn to spend less than they earn and also save (quite literally) for the rainy days. Commodity prices undergo peaks and troughs and we have to live with these trade cycles.
There are issues that have been commented upon already concerning transparency in prices, regular timely data on price movements, the need for improving financial literacy and most important of all securing secondary sources of income to augment the primary source of selling coffee by planters.
The devil’s advocate’s view!
Coffee prices have increased three times and the price of a cup of coffee to the final consumer has increased by four times and more in the past decade, more than any other commodity. Do we expect the price to reach that of gold? We growers should be rational, responsible citizens and prudent personal financial managers instead of burdening the consumer indefinitely and cutting our own noses in the process.
Spot on regarding coffee prices having peaked internationally. This is precisely the time when proper financial planning should be exercised.
However, where the Planters are missing out is the opportunity to value add. The margins that Cafes like Cafe Coffee Day make over a cup of coffee is way beyond the grasp of the Planter. Players like Starbucks, Third Wave Coffee, Araku and so on seldom change the price of coffee based on cost of beans. Kodagu needs low cost artisanal cafes set up by small growers as there is enough tourist footfall. Sales of “Bella Kaapi” should evoke good response.
“Coffee farmers’ noses are already cut many times” ? We are just surviving. Do you think this price rise is HIGH ?
Are you a genuine coffee farmer? Have you ever planted one? Have you ever waited for 5 years to get income after planting? Have you ever faced biennial income? Have you ever faced the wrath of nature ?
Have you ever faced the speculators’ games in NYC ? 330 CENTS IN 1975 . 300 cents in 2025 … Have you ever seen this price mechanism in 50 years .. who is the Devil’s advocate?
While the fluctuations In coffee prices is a really problematic conundrum from planters, the recent excessive rainfall has made matters even worse with dire consequences for this years crop.
☕🌧️ Coffee Land in Crisis: Record Rainfall Threatens India’s Coffee Crop 🌧️☕
Coorg has already received the normal annual average rainfall in just the first month of the monsoon. What usually nourishes our coffee estates has now turned into relentless downpours, flooding plantations, damaging berries, and threatening the livelihoods of thousands of growers and workers.
This unprecedented rain means Indian coffee production is set to hit an all-time low in the coming harvest season.
All the stakeholders especially Coffee Board needs to take measures to mitigate this unprecedented loss – including appropriate support prices.
What is mentioned here is correct. Agriculturists have to augment their income with other businesses as is done in Tulunad. Value addition to the primary crop is also essential – else the intermediaries and end manufacturing entities make all the money.
One of the best exponents for value addition was C G Siddhartha who grew Cafe Coffee Day into a behemoth organisation from scratch – a perfect Bean to Cup story! Not everyone can do this but nothing prevents the ubiquitous small Coffee Shop being set up by local farmers as small enterprises.
Apparently the Coffee Board has an initiative – but this is something that small growers should embrace to realise value from the coffee beans that they produce. It is an ideal supplementary income for small growers, but commitment and dignity of labour is required.
This article talks about the difficult situation faced by small coffee growers in Karnataka. Many are holding back their coffee harvests in the hope that prices will rise, but there’s no certainty this will happen. Unfortunately, if prices remain low, these growers risk suffering significant financial losses.
There should be effective and regular updates on coffee prices and better support systems to help farmers navigate market trends and make proper decisions.
Additionally, it could be beneficial for small growers/Farmers to explore alternative small businesses to reduce their dependence solely on coffee. More enterprise needs to be shown by coffee planters.
These are really good suggestions made in the article. We are small growers too and while the increased prices are welcome, there is a dire need to inculcate financial discipline through proper understanding of budgeting and financial literacy.
We have to augment our incomes with secondary sources. Homestay is fine, but the standards need to be improved to attract the right guests at a respectable price. Also, it is a major strain on the available natural resources of the land.
We have to explore every available opportunity and respect *dignity of labor*. Else all the expenditure that we make from coffee revenues are mopped up by immigrant traders and businessmen – who seem to be flourishing – no doubt because of their hard work.
Our “thought” leaders, Community Organisations (Kodava Samajas, Akhila Kodava Samaja, etc), Planter Organizations would do well to take note of the suggestions made by Small Growers. We need to act immediately.