Bengaluru :
Coffee growers in Karnataka, who went through a rough patch recently, are happy, thanks to a huge drop in production and supply from major coffee-growing countries in the global market.
Growers in Kodagu, Chikkamagaluru and parts of Hassan are upbeat after coffee prices hit a five-year high despite the state registering a low yield this time due to severe drought and demonetization.
According to a senior official in the coffee board, Bengaluru, severe drought in major coffee-producing countries like Brazil, Vietnam and Indonesia has resulted in poor yield and quality issues. As a result, there’s a great demand for Indian coffee, 70% of which is produced in Karnataka.
According to Kabir, a leading coffee dealer in Madikeri, Kodagu, coffee prices are rising for the past fortnight and the trend is expected to continue till April. A 50-kg bag of Robusta variety, produced mostly in the state, costs Rs 4,000 while Arabica costs Rs 9,600. Last year, the average price of Robusta was Rs 3,000 and Arabica Rs 4,600.
The prices have picked up in the retail market too after remaining at a low for the past five years. The prices range between Rs 150 and Rs 200 a kg.
Coffee board former vice-chairman Sannuvanda M. Kaverappa added that a shortfall of 2.08 million bag of 60 kgs each in the international market this year will lead to a rise in coffee prices in India.
“About 70% of Indian coffee will be exported and the rest will meet the domestic demand,” he added.
B S Jairam, president, Karnataka Grower’s Federation (KGF), said the Robusta yield has been good this season in the state compared to Arabica.
“Most growers are in distress owing to poor yield. The drought, labour crisis and demonetization have virtually pushed growers to the wall. The marginal current price rise will definitely not compensate for losses over the years,” said Karnataka Planters’ Association chairman M M Chengappa.
(With inputs from G Rajendra in Madikeri)
source: http://www.timesofindia.indiatimes.com / The Times of India / News> City News> Bangalore News / by Manu Aiyappa Kanathanda, TNN / January 26th, 2017
