Brazil coffee market crashes, but no cheer for Kodagu growers

The reason? Over the last few years, coffee growers in the district have abandoned the Arabica variety and opted for Robusta crop as they were facing problems with the former.

MADIKERI: The crash in the Brazilian coffee market has sent prices of Arabica parchment coffee soaring. This could have been happy news for coffee growers of Kodagu, but it is not, as the majority of them have not benefited from this price rise.

The reason? Over the last few years, coffee growers in the district have abandoned the Arabica variety and opted for Robusta crop as they were facing problems with the former. Only a handful of farmers, who have still been maintaining Arabica coffee plantations, have earned good profits this time.

But over the years, coffee growing has become a risky business, especially due to changing weather conditions. Untimely and incessant rains have caused havoc and reduced coffee yields, pushing growers to the brink. Their dire situation can be gauged by the fact that over 40,000 farmers have applied for crop damage compensation in the district.

‘Corporate coffee growers will take advantage of high price’

“Arabica variety make s up for just 10 per cent of the coffee grown in Kodagu now. Many growers have shifted from the Arabica variety as crops were affected by stem borer and other diseases. The maintenance of the crop too is high.

It is ironic that when growers here have abandoned the crop, Arabica prices have hit Rs 15,000 to Rs 16,200 for a 50 kg bag,” rued Dr Kaverappa, the former vice-president of Coffee Board. The prices of Robusta have been hovering around Rs 4,100 for cher ry and Rs 7,600 for parchment. “The Robusta cherry price had gone up to Rs 4,500 two months ago. It has dipped as there is sufficient yield now and the coffee picking of Robusta has almost ended.

Over 70 per cent of Robusta produce from Kodagu district is exported to European countries and the prediction is that the price would go up in July,” he added. But grower Harish Madappa said, “But small growers won’t benefit from this July price rise as they are forced to sell all their produce immediately. They have to pay labourers and look after other expenses. Corporate growers will take advantage of high prices as they have the capacity to store the yield. Also, coffee traders will make money.”