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Bengaluru’s beloved filter coffee is about to get costlier, with prices set to rise by 10-15% from next month due to soaring global coffee bean rates. The surge in costs has prompted city hoteliers to revise their pricing.
According to reports, the price of Arabica coffee powder jumped from ₹588 per kg on January 15 to ₹725 by February 6. Bengaluru Hoteliers Association (BBHA) noted that February saw a ₹110 per kg increase, with another ₹100 per kg hike expected in March. Previously, coffee price hikes were limited to ₹20-₹30 per kg, making this surge unprecedented.
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Currently, filter coffee costs ₹12-₹15 per cup, but post-hike, prices are likely to range between ₹15 and ₹20. Some eateries have already implemented the new rates, while others are expected to do so by March 1. Additionally, a 5% rise in milk prices may further impact coffee rates, as many restaurants await this adjustment before finalizing their new pricing.
The coffee price surge stems from severe crop losses in Brazil and Vietnam, the world’s largest producers, due to adverse weather. Experts predict that recovery could take five to eight years. Meanwhile, Karnataka, India’s top coffee-producing state, continues to supply 70% of the nation’s annual 365,000-tonne output.