Prices are significantly higher than average prices since 2008

Spike in prices is attributed to a global shortage

Coffee production in Karnataka to touch 3.54 lakh tonnes

Coffee prices have surged to a 15-year high globally, offering a glimmer of hope for growers in Karnataka. Despite a poor yield due to drought, record prices are providing relief to coffee growers in Kodagu, Chikkamagaluru, and parts of Hassan.

A prominent dealer in Kodagu revealed that a 50kg bag of Robusta beans now fetches Rs 6,600 to 6,800, while Arabica is priced at Rs 7,750 to 7,850—significantly higher than the average prices since 2008.

The spike in prices is attributed to a global shortage caused by extreme weather conditions, particularly frost in Brazil, the world’s leading coffee exporter. Despite challenges, coffee production in Karnataka is reportedly expected to touch 3.54 lakh tonnes, a slight increase from the previous year. Karnataka dominates coffee production in India, accounting for 71%, followed by Kerala (21%) and Tamil Nadu (5%). The major export markets include Italy, Belgium, Germany, and Russia.

Over the past decade, growers faced low prices, high production costs, labour shortages, and diseases, prompting some to abandon coffee cultivation for more lucrative ventures.

Despite the current price surge, many growers remain in distress, and the local market is yet to fully reflect the global increase. Growers expect prices to rise in hotels, restaurants, and coffee shops in the latter half of the year, though experts anticipate a potential decrease in demand in January and February before an increase later in the year.