Arabica coffee price crashes in Indian market

Madikeri: The price of Arabica coffee has been decreasing since a week caused by ongoing Ukraine -Russia war. The coffee industry is already sailing in trouble owing to increased production cost and adverse climactic conditions and price fall in recent years.

Amid trouble the Arabica growers in the country has reason to cheer since three years as the price of Arabica parchment coffee jumped nearly 25-30 per cent. This price hike due to snow fall in Brazil , the largest Arabica coffee producing country in the world.

During November last a 50 kg Arabica Parchment was being sold at Rs 11,700-11,800. Then the price jumped to 16,100-16,200. Since a week the price came down to Rs 15,600 -15,650 adding to the worries of coffee growers. The State accounts for 70 per cent of coffee production of the country with a tiny district Kodagu alone having 30 per cent share in country's production. The price of Arabica cherry also decreased to Rs 7700 from Rs 8000. The price of Robusta parchment and Robusta cherry also came down 2 to 5 percent in Chickamagalur and Kodagu markets.

Though the main reason for price slump is Ukraine- Russia war, both are importers of Indian coffee. According to Coffee board data, India exported 6604 metric tonnes of green bean, instant and fried coffee to Ukraine from 1 April 2021 to January 31. During 2018-19 financial year Indian exports to Ukraine was 7327 metric tonnes. During last financial year Russia imported 23,519 metric tonnes of Coffee from India.

Among 11 countries, union of Commonwealth of Independent States (CIS) Russia accounts 74 percent of Indian imports while Ukraine accounts 20 percent. Though the main reason for price fall is not stalling of exports to both countries says market experts. The uncertainty and fear in European markets about war impact is prime reason for price fall.

Coffee is lifeline of Kodagu and Chikmagalur districts in south Karnataka and nearly 3 lakh families depending directly and indirectly in coffee industry. If the war continues the price fall of coffee is evident and increase in petroleum products, metal and cooking oil would badly impact on growers.