Global coffee prices are on the rise, leading to an impending price hike for coffee consumers in India. The shortage of beans in key producing countries like Brazil and Vietnam, exacerbated by changing climate conditions, is driving the surge in prices. Raw coffee prices in India have reached record highs, with premium Arabica parchment breaching ₹27,500 for a 50 kg bag, while Robusta parchment is around ₹23,600.
According to Perikal M Sundar, Chairman of the Indian Coffee Trade Association (ICTA), auction prices have more than doubled since early 2024 and continue to climb. Arabica parchment prices have increased by ₹160 to ₹660 per kg in the past month, with robusta cherries surpassing the ₹500 mark after doubling in price over the last year. Sundar anticipates that the cost of premium roast and ground blends will exceed ₹1,000 per kg in the coming days, up from the current range of ₹880-900 per kg.
ICTA is planning to request government intervention to impose duties on coffee exports to support domestic businesses. Around two-thirds of the country’s coffee production of 3.6 lakh tonnes is exported. Companies like CCL Products (India) Ltd are also facing challenges due to the volatile global green coffee prices, necessitating occasional price adjustments to remain competitive.
Additionally, Nestle India’s Chairman and Managing Director, Suresh Narayanan, noted the significant rise in coffee prices, stating that a 75% increase occurred between 2024 and the previous year. If prices continue to soar, companies may consider implementing price hikes to offset inflationary pressures. As coffee prices continue to escalate globally, consumers in India can expect to pay more for their daily cuppa in the near future.
