Record prices bring joy to coffee farmers

Robusta coffee prices soar in south India due to supply shortage, driven by global factors and local challenges.

Robusta coffee farmers in south India are celebrating a bountiful harvest season, with prices reaching new heights. On Friday, the farm gate price of raw Robusta coffee berries in Wayanad market soared to a record ₹251 a kg, a significant increase from ₹171 a kg during the same period last year. This time in 2022, the price was even lower at ₹80 a kg.

Though the harvest is almost over, a shortfall in supply has contributed to the surge in prices, according to market sources. Many farmers are opting to hold onto their produce, anticipating even higher prices in the coming days. Concurrently, the spot price for Robusta coffee beans has risen to ₹450 a kg.

Sources say a sharp decline in Robusta coffee production in Brazil, a leading coffee producer, due to drought-like conditions is also driving up the prices. Reports indicate that Brazil’s coffee stock has plummeted to below two million bags (60 kg each) this year, down from nearly 5.5 million bags last year.

Additionally, the coffee market in Vietnam, another key Robusta producer, has been temporarily closed due to lunar holidays, further tightening supply.

The dearth of rainfall is the major concern of farmers now, especially small-scale coffee farmers, as irrigation facilities are out of their reach. Many farmers living on forest fringes are also grappling with increased wildlife crop raids, posing additional challenges.

In a related development, the price of Arabica coffee seeds has also reached an all-time high at an auction held in Bengaluru, fetching ₹605 a kg, up from ₹456 a kg during the same period last year.

According to the Coffee Board of India’s Post Blossom Estimate, the total coffee production in India for the 2023-2024 fiscal is projected at 3,74,200 tonnes, including 2,61,200 tonnes of Robusta coffee, of which Wayanad contributes 61,050 tonnes.