Historic Milestone in Coffee Industry: Robusta Prices Surpass Arabica, Reach All-Time High

Bengaluru: In a groundbreaking development for the coffee industry, robusta coffee prices have surged past Arabica prices to reach an unprecedented all-time high, driven by global supply shortages. The farmgate price of robusta green coffee berries soared to a record ₹172 per kg in the Wayanad market, on Wednesday marking a significant increase from ₹115 per kg during the same period last year. Additionally, the spot price of Robusta Parchment coffee beans skyrocketed to an all-time high of ₹315 per kg, compared to ₹220 per kg in March 2023. Notably, in March 2022, the rates for raw fruits and parchment stood at ₹80 and ₹145 respectively.

In the Kodagu market, the price of robusta parchment surged to Rs 14,700 per 50 kg bag, setting a new milestone. This marks the first time that the price of cherry and parchment coffee has surpassed that of Arabica. Arabica cherry coffee is currently priced between 8000-8200 per 50 kg bag, while robusta commands a higher price of over 8600 -8700 rupees.

Experts attribute this remarkable surge in prices to a combination of factors, including a surge in global demand and crop failures in leading coffee exporting countries like Brazil, Indonesia, and Vietnam due to extreme weather conditions. Despite challenges in yield, India's coffee production is expected to reach 3.54 lakh tonnes, slightly up from last year's production of 3.52 lakh tonnes, according to officials from the Coffee Board.

Former Coffee Board member, Dr. Sannuwanda Kaveerappa, predicts a further rise in robusta coffee prices, attributing it to crop destruction in Vietnam and Indonesia and the superior quality of Indian coffee compared to other regions. With Karnataka leading the way, accounting for 71% of the country's coffee production, followed by Kerala (21%) and Tamil Nadu (5%), India remains a significant player in the global coffee market.

As coffee prices soar, it is anticipated that prices in hotels, restaurants, and coffee shops will witness an upward trend in the coming months, potentially impacting consumers. This price hike may prompt consumers to shift towards other alternatives like tea. Additionally, the rise in robusta prices may lead Arabica growers to consider transitioning to robusta cultivation due to its lower maintenance costs and rarity of borer infestation.

Market analysts anticipate further increases in coffee prices in the coming days, with the possibility of maintaining stability even in the face of minor fluctuations.