Coffee prices surge in India as Brazil and Vietnam face harsh weather

Global coffee prices surge as adverse weather in Brazil and Vietnam impacts supply, boosting rates for Indian farmers.

Kochi: Coffee farmers in India are benefiting from the rise in international coffee prices. On Monday, the global price of Robusta coffee increased by USD 153 per tonne. While this has not yet fully reflected in domestic prices, a noticeable difference is evident.

Robusta coffee, predominantly grown in Kerala, did not fetch similar prices in the last week of September and the first few days of November, but coffee outlets are now offering better rates. M R Ganesh, former vice-chairman of the Coffee Board and a member of the Vietnam Coffee Growers Association, said that adverse weather in major coffee-producing countries such as Brazil and Vietnam has contributed to the price rise. He added that global demand is not fully met, which has further driven the increase.

At the Kattappana market in Idukki, Robusta beans are being sold at Rs 240 per kilogram and seeds at Rs 450 per kilogram. Compared to prices of Rs 210–410 per kilogram during the first week of October, this reflects a rise of around Rs 30–40 for coffee beans and seeds in Wayanad.

The impact of Vietnam’s Cyclone Kalmaegi on local coffee crops may also influence prices. In addition, rainfall in Brazil’s main coffee-growing regions has been below the required levels. The global coffee market, especially in the US and Brazilian real, affects nearly 50% of international coffee pricing.