The Indian coffee industry is celebrating as prices of Robusta beans reach an all-time high of Rs. 10,080 per 50 kg bag, marking a historic moment for growers across the nation. This surge, unprecedented since the establishment of coffee estates in the Western Ghats region during the 1860s, comes as a relief to many amidst the various challenges faced by the industry.
Unlike the relatively stable pricing of Arabica coffee, known for its smooth texture, Robusta prices have typically remained between Rs. 2,500 and Rs. 3,500 per 50-kg bag over the past 15 years. However, the recent spike brings joy, particularly to smaller growers who predominantly cultivate Robusta due to its lower production costs compared to Arabica.
Nithin, a coffee planter in Chikkamagaluru, expressed his elation, stating, “I never imagined, even in my wildest dreams, that prices would reach the Rs 10,000 mark.” Nithin had already capitalized on the surge by selling a portion of his stock in anticipation of further increases.
The surge in Robusta coffee prices is attributed to a combination of supply-demand dynamics and shifts in global production patterns. Factors such as adverse weather conditions leading to decreased production in major Robusta-producing countries, coupled with changes in cropping patterns and the shifting focus of growers to other lucrative crops, have contributed to this windfall for Indian growers.
In India, the states of Karnataka, Kerala, and Tamil Nadu collectively contribute to 83% of coffee production, with Karnataka alone accounting for 70% of the total output. However, coffee plantations in Karnataka have faced challenges in recent years, including labour shortages and the encroachment of wildlife, leading to many farmers selling their land or diversifying into tourism ventures.
Despite these challenges, the surge in Robusta coffee prices offers a glimmer of hope for the Indian coffee industry, signalling a potential turnaround after years of struggle. With prices soaring to unprecedented heights, growers are optimistic about the future prospects of the industry.