BENGALURU: You may have to pay more for a cup of coffee from October 15. For, the prices of coffee powder are set to go up.
The Indian Coffee Trade Association (ICTA) on Tuesday announced that the price of coffee powder per kg will go up by Rs 100. It will become inevitable for hotels and cafes to hike the prices of coffee, according to sources.
“We have no other option, but to increase the prices of coffee powder. Prices of Arabica and Robusta coffee have increased. Globally, the demand for coffee has been increasing. However, its production has come down due to various factors. Indian coffee is most sought after and the demand has to be met. Compared to last year, the bean prices increased from Rs 200- 280 a kg this year,” Perikal M Sundar, ICTA chairman, told TNIE.
According to ICTA, India produces over 3.5 lakh tonnes of coffee, of which 70% is Robusta. Of the total production, around one lakh tonne is domestically consumed. Coffee prices have been increasing steadily since January. Robusta coffee prices have increased from Rs 200 a kg to Rs 420 a kg and Arabica from Rs 290 a kg to Rs 465 a kg. Climate change has led to a 20% decline in coffee production.
“Prices of coffee in the domestic market will go up when they increase in the international market. There has been a 40-50% increase in green coffee production in the past three years. A correction in coffee prices will happen when production increases. However, a watch on chicory blending should be kept as there are chances of adulteration in view of the increasing demand, according to an official from the Coffee Board.
According to the Food Safety and Standards Authority of India, blending of chicory with coffee is permitted up to 49%. However, traders and roasters blend not more than 20% as it reduces the flavour and texture of coffee. In south India, it is less than 20%. But now with the coffee prices going up, the blending of chicory will also increase. There should be a strict vigil on it, according to officials and traders.
There are 300 registered coffee roasters in Karnataka and around 500 in south India. Also, there are 3,000 registered coffee trading units. The ICTA has warned unregistered units against marketing substandard coffee.