Decreasing Robusta coffee prices cause worry among growers in Kodagu
MADIKERI: The Robusta coffee growers in Kodagu face dilemma following the dwindling rates. While many hope for the prices to shoot up again, several are in a fix if they should sell the produce immediately or later.
The coffee production this year took a hit in the global market and the prices of both Arabica and Robusta shot up.
Robusta variety of European Preparation coffee earned Rs 450 to Rs 500 per kg during January this year and the Arabica variety shot up to Rs 600 per kg.
With production of coffee being hit in Vietnam and Brazil, the growers expected the prices to shoot up every further.
Nevertheless, the prices, especially of Robusta variety, are gradually decreasing due to the global market fluctuation and the Robusta coffee is currently priced at Rs 380 per kilo.
This trend in the market has brought worries among the coffee growers in Kodagu, who had hoarded the produce expecting further hike in price.
“The small growers who had immediate need for money sold the produce and received the perks of the price hike. However, 80 per cent of the growers who did not sell the produce during this period have now turned into a worried lot. We are in a fix,” shared Karthik Aiyappa, a coffee grower.
He shared that he faces a dilemma of whether or not to sell the produce immediately.
“One has to wait and watch if the prices are likely to go up. A few experts opine that the prices might recover in the coming days and we are hoping for the best,” he added.
Harish Madappa, another grower in South Kodagu, shared that several small growers were hoarding the produce as they expected the prices of coffee, especially Robusta parchment, to go up further.
“Globally and across Kodagu, the production of coffee had taken a hit this year due to the weather condition. This hinted at the prices of coffee going up further, resulting in nearly 80 per cent of the growers hoarding the produce to enjoy profits that the sector had not seen from decades. However, the gradual decreasing price is causing worry,” he shared.
He expressed that Indian coffee must be priced higher than the prevailing global price as coffee in India is grown under the shade and has higher quality.
Coffee trader Kabir, meanwhile, opined that the fluctuation in Robusta coffee price is due to the increased supply of coffee beans from countries like Indonesia, Brazil and Uganda.
“Coffee is being sold from other countries to the international markets at a lesser price than the Indian coffee and hence the prices have dropped down. However, this trend will change and the prices are likely to go up in the coming days,” he explained.