This spike, amidst stable Arabica pricing, signals a boon for Indian growers, leveraging robusta’s affordability.
India’s Robusta Coffee Prices Hit Record High in Century-Old Industry (Photo Source: Pexels.com)
India’s coffee industry is experiencing a remarkable upswing with robusta coffee bean prices hitting an all-time high of Rs 10,080 per 50 kg bag, a historic milestone since the establishment of coffee estates in the Western Ghats region during the 1860s by the British. This is big news for Indian coffee growers who rely on the Robusta given its low-cost inputs.
In stark contrast to the traditionally stable pricing of Arabica coffee, renowned for its velvety shot layer, Robusta prices have remained relatively low, fluctuating between Rs 2,500 to Rs 3,500 per 50 kg bag for the past 15 years.
While export quantities witnessed a marginal decline of 2.5% at 3.88 lakh tonnes compared to 3.98 lakh tonnes in 2022-23, the Indian coffee sector reaped the benefits of soaring global robusta prices, which have reached a three-decade high due to supply disruptions in major producing countries like Vietnam and Brazil.
Commenting on this, Mr. M J Dinesh, Chairman of the Coffee Board says, “The change in the global temperature has impacted the shortage of coffee from Vietnam. The instant coffee market in India will gain from this; the same is gaining popularity too. Moreover, small coffee growers and laborers will reap the profit. They may witness an upsurge in their daily wages.”
The increase in robusta prices resulted in a 20% rise in per unit realization for Indian exporters, reaching ₹2.7 lakh per tonne during the 2023-24 period, up from ₹2.26 lakh in the previous fiscal year.
source: http://www.krishijagran.com / Krishi Jagran / Home> News / by Mrini Devnani / April 16th, 2024
India’s robusta coffee prices skyrocket to Rs 10,080 per 50 kg, a historic high. Growers face challenges, but the surge brings relief. Supply-demand dynamics and shifts in production contribute to this windfall, offering hope for the industry.
India’s coffee industry is witnessing a windfall as robusta coffee bean prices skyrocketed to an unprecedented Rs 10,080 per 50 kg bag as of Friday. This surge marks a historic high since the establishment of coffee estates in the Western Ghats region during the 1860s by the British.
Unlike the relatively stable pricing of Arabica coffee, known for its creamy layer in a shot, robusta prices have typically ranged between Rs 2,500 to Rs 3,500 per 50 kg bag for nearly 15 years.
The surge in robusta coffee prices has brought relief and joy to coffee growers, especially those with smaller holdings who primarily cultivate robusta due to its lower input costs compared to Arabica. These growers have faced challenges such as erratic rainfall, crop damage by wild animals, and rising input and labor costs over the past decade.
G Nithin, a coffee planter in Chikkamagaluru, expressed his delight, telling TOI, “I never imagined, even in my wildest dreams, that prices would reach the Rs 10,000-mark.” Nithin had already sold a portion of his stock in anticipation of further price increases.
According to Nanda Belliappa, chairman of the Codagu Planters Association, the surge in robusta coffee prices can be attributed to the basic principles of supply and demand. Factors such as decreased coffee production in major robusta-producing countries due to adverse weather conditions and changes in cropping patterns have contributed to this windfall for Indian growers.
Sources within the Coffee Board of India also attribute the price surge to major robusta coffee growers like Vietnam and Indonesia shifting to more profitable crops such as dragon fruits and avocados. Additionally, there is an increasing demand for coffee in the cosmetics industry.
In India, Karnataka, Kerala, and Tamil Nadu collectively contribute to 83% of coffee production, with Karnataka alone accounting for 70% of the total output. However, coffee plantations in Karnataka have faced challenges in recent years, with many farmers selling their land to real estate developers or converting it into tourism ventures due to diminishing returns and labor shortages.
Somaiah, a coffee farmer, told TOI, “There is a severe scarcity of skilled workers to tend to the estates, coupled with a steep increase in labor costs.” Planters have increasingly relied on migrant laborers from Bengal and Assam, who bring experience from working in tea estates.
Moreover, wildlife encroachment poses a significant threat to coffee plantations, with elephants, bisons, monkeys, and giant squirrels damaging crops in search of food and water.
Despite these challenges, the surge in robusta coffee prices offers a glimmer of hope for Indian coffee growers, signaling a potential turnaround for the industry after years of struggle.
source: http://www.economictimes.indiatimes.com / The Economic Times / Home> News> Business News> News> Economy / by ET Online / April 13th, 2024
India’s coffee shipments surged 13.35% to 1,25,631 tonnes in January-March 2024, driven by robust demand for Robusta coffee. Arabica and Robusta are the two varieties grown in India, with Arabica having a smoother taste and Robusta being more bitter. Export of Robusta beans increased by 18%, while Arabica exports declined. Instant coffee exports and re-exports also saw growth. The total coffee export value during this period was Rs 3,644 crore, ..with major destinations including Italy, Russia, the UAE, Germany, and Turkey.
Coffee shipments from India rose 13.35 per cent to 1,25,631 tonnes during January-March period of this year on higher demand for Robusta coffee, according to the official data. The country had exported 1,10,830 tonnes of coffee in the same period in 2023.
India, Asia’s third-largest producer and exporter, grows Arabica and Robusta varieties of coffee.
Arabica coffee bean has lesser caffeine content than the Robusta. Arabica has a sweet and smoother taste, while the Robusta is generally more bitter and harsher on the taste buds.
According to the Coffee Board of India’s latest data, export of Robusta coffee bean rose by 18 per cent to 69,637 tonnes in the first quarter of the 2024 calendar year from 59,050 tonnes in the year-ago period.
However, the shipment of Arabica coffee bean declined to 13,419 tonnes from 15,468 tonnes in the said period.
Instant coffee exports rose 16,218 tonnes during January-March of this year as against 15,238 tonnes in the year-ago period, while re-export of coffee also increased to 26,239 tonnes from 20,952 tonnes in the said period.
In terms of value, total coffee exports were at Rs 3,644 crore during January-March of 2024, higher than Rs 2,604.44 crore achieved in the year-ago period. The unit value realisation was Rs 2,90,057 per tonne.
Italy, Russia, the UAE, Germany and Turkey are the major coffee export destinations for India.
In its post-blossom estimate, the board has projected the country’s total coffee production at 3,74,200 tonnes for the 2023-24 marketing year (October-September), higher than the actual output of 3,52,000 tonnes in the previous year.
In the full 2023 calendar year, India’s coffee exports had declined by 5.4 per cent to 3.77 lakh tonnes.
In a groundbreaking development for the coffee industry, robusta coffee prices have surged past Arabica prices to reach an unprecedented all-time high, driven by global supply shortages.
Bengaluru:
In a groundbreaking development for the coffee industry, robusta coffee prices have surged past Arabica prices to reach an unprecedented all-time high, driven by global supply shortages. The farmgate price of robusta green coffee berries soared to a record ₹172 per kg in the Wayanad market, on Wednesday marking a significant increase from ₹115 per kg during the same period last year. Additionally, the spot price of Robusta Parchment coffee beans skyrocketed to an all-time high of ₹315 per kg, compared to ₹220 per kg in March 2023. Notably, in March 2022, the rates for raw fruits and parchment stood at ₹80 and ₹145 respectively.
In the Kodagu market, the price of robusta parchment surged to Rs 14,700 per 50 kg bag, setting a new milestone. This marks the first time that the price of cherry and parchment coffee has surpassed that of Arabica. Arabica cherry coffee is currently priced between 8000-8200 per 50 kg bag, while robusta commands a higher price of over 8600 -8700 rupees.
Experts attribute this remarkable surge in prices to a combination of factors, including a surge in global demand and crop failures in leading coffee exporting countries like Brazil, Indonesia, and Vietnam due to extreme weather conditions. Despite challenges in yield, India’s coffee production is expected to reach 3.54 lakh tonnes, slightly up from last year’s production of 3.52 lakh tonnes, according to officials from the Coffee Board.
Former Coffee Board member, Dr. Sannuwanda Kaveerappa, predicts a further rise in robusta coffee prices, attributing it to crop destruction in Vietnam and Indonesia and the superior quality of Indian coffee compared to other regions. With Karnataka leading the way, accounting for 71% of the country’s coffee production, followed by Kerala (21%) and Tamil Nadu (5%), India remains a significant player in the global coffee market.
As coffee prices soar, it is anticipated that prices in hotels, restaurants, and coffee shops will witness an upward trend in the coming months, potentially impacting consumers. This price hike may prompt consumers to shift towards other alternatives like tea. Additionally, the rise in robusta prices may lead Arabica growers to consider transitioning to robusta cultivation due to its lower maintenance costs and rarity of borer infestation. Market analysts anticipate further increases in coffee prices in the coming days, with the possibility of maintaining stability even in the face of minor fluctuations.
source: http://www.thehansindia.com / Hans India / Home> News> State> Karnataka / by Coovercolly Indresh / Hans News Service / March 28th, 2024
Subko, a brand known for its premium coffee, baked goods, and bean-to-bar chocolate, has secured a significant investment round of $10 million.
Subko, a Mumbai-based brand known for its specialty coffee, craft-baked goods, and bean-to-bar chocolate, has secured a significant investment of $10 million. Leading the round is renowned investor and co-founder of Zerodha, Nikhil Kamath, valuing the company at approximately $34 million post-money.
Kamath is also an investor in Third Wave Coffee.
Subko competes with several players including Third Wave Coffee, Slay Coffee, Blue Tokai, Sleepy Owl Coffee, Hatti Kaapi, and Rage Coffee.
The latest funding round highlights Subko’s growing appeal. The company’s focus on celebrating South Asian culture through its products, coupled with its design-driven experiential approach, has attracted a diverse range of investors.These include the Blume Founders Fund, The Gauri Khan Family Trust, Priya & John Abraham, Sangita Jindal, Srinivas & Pallavi Dempo, The Mehta International Mauritius Limited Group etc.
The funds will fuel Subko’s expansion plans. Key areas of focus include:
Building a strong team
Developing innovative customer experiences through technology
Investing in research and development for new products and design
Strengthening farm-level infrastructure for specialty coffee and cacao beans
Launching ready-to-drink coffee products
Subko also plans a strategic rollout of flagship experience cafes with different formats. These cafes will be carefully curated and launched in select Indian cities and potentially even global capitals. The aim is to showcase South Asian craftsmanship and the region’s exceptional agricultural resources.”Nikhil’s participation is a testament to our brand’s potential,” said Rahul Reddy, Founder, CEO, and Creative Director of Subko. He emphasizes Kamath’s alignment with Subko’s mission: empowering homegrown Indian brands and navigating the complexities of the consumer market.
“I am deeply impressed by Subko’s commitment to showcasing the finest Indian craftsmanship on a global platform. It is paramount that a distinctive Indian brand like Subko leads the way in delivering our unique, curated experiences to the world. My journey with Subko, transitioning from a customer to an investor, has given me unique insights into the brand’s evolution and potential. I am eagerly looking forward to witnessing the brand’s narrative unfold and flourish in the coming years,” said Nikhil Kamat.
Subko Specialty Coffee Roasters and Craft Bakehouse is a coffee roastery, bakehouse, and experiential cafe concept in Mumbai that focuses on the Indian subcontinent’s origin stories across a variety direct-to farmer sourcing efforts.
“Zerodha founders just doubled down on coffee in a big way..Nikhil Kamath already had a small stake in Third Wave Coffee, which is sort of the leading challenger brand competing with Starbucks India today. And now, a firm fully owned by the two brothers (NKSquared) has acquired a massive 25% stake in a smaller competitor.With the existing investment in Third Wave Coffee, the Kamaths would have surely gotten much insights about the functioning and the potentila of the space,” said Jayant Mudhra of Dexter Capital Advisors.
Subko sources specialty coffee, fine cacao, and wheat, directly from farmers and emphasizes hyper-traceability, which involves tracking and documenting every step in the supply chain, including recent block-chain enabled coffee and pioneering direct tipping systems for coffee farmers.
The brand works in direct trade relationships with coffee estates and smallholder farmers harvesting and processing coffee and cacao, roasting and transforming the agricultural produce into fine specialty finished goods, and along with its bakehouse, showcases the products in flagship cafes and ‘mini’ pop up stores in addition to shipping products pan-India, and globally.
source: http://www.business-standard.com / Business-Standard / Home> Companies> News / by Sunaina Chadha, New Delhi / March 26th, 2024
Hello Folks! Sorry for being absconding for this long, got caught up in the hustle of life
Anyways, here is a fresh one and I believe its perfect to make up for the “disappearance”.
The end of 2017 was a crazy one, exhausting honestly. So to rejuvenate I planned a trip to Coorg, I have heard so many good things about the place I had to see it by myself.
Trust me it was one of the most beautiful experiences I have ever had on a trip. The place is blessed with breathtaking landscapes and wildlife. The sun rises with the lush green view of the coffee plantation that goes on for stretches is mesmerising.
Coorg is synonym to coffee and being a coffee lover I wanted to explore. Luckily enough I had a chance to meet Mr. Bharath who runs a coffee plantation there. He is certified by coffee board of India as a Roaster and Barista and also we are members of SCAA. A very passionate man who treats coffee as his treasure.
As I went around with him exploring the coffee estates I witnessed how much love, passion and hard work goes into our early morning cuppa.
To make the best coffee available to all of us as fresh as it can get Bharath has started an online portal http://www.crazybeancompany.com/ where Natural processed coffee is available. The best part of it all is that the order can be custom roasted and grounded as per your requirement. I had to share the details afterall we all deserve our good blissful cup of coffee.
In his words –
“Farmers by birth, roasters by choice and business people by accident. We love our food and drink and we enjoy making it for others as well. There’s an old saying- “if you’re good at something don’t do it for free” so we started The Crazy Bean Company.
We can tell you that our farm in the heartland of Kodagu is irrigated by a freshwater spring, fertilised by wild animals and birds, the fruits are serenaded by classical music and caressed of their stems on maturity. Well, the classical music part isn’t true everything else is. We also follow modern, scientific and sustainable methods of farming, which means absolutely no pesticides.“
So here you go guys! Hope I am helping out some of my travellers & coffee loving friends.
Cheers !
source: http://www.apurvapriyadarshini.wordpress.com / Home> Shoe-Syrup-Shushi / posted in ‘ On the Road / by Apurva Priyadarshini / December 25th, 2017
Third Wave Coffee has announced Co-founder Sushant Goel will transition from his role as CEO to a member of the company’s board, with Rajat Luthra announced as his successor effective from Q1 2024-25.
“As CEO and Co-founder, I have had the privilege of leading the company through its formative years and I am incredibly proud of the journey that we have embarked on,” says Goel. “The brand is ready to embark on its next leg of growth.
“Now, as I transition to the Board, I am excited to continue contributing towards our vision and growth from a different vantage point. Rajat is a veteran in the QSR industry, and I am filled with optimism on what the future holds for Third Wave Coffee under his stewardship.”
Goel, along with Co-founders Ayush Bathwal and Anirudh Sharma, have been able to scale the company to over 100 outlets across India. As CEO, Goel was responsible for steering the company’s business strategy and forging robust investor relations.
Luthra has previously served as CEO of Kentucky Fried Chicken India and Nepal for over a decade.
In a joint statement, representatives of investor companies Westbridge Capital and Creaegis said, “We extend our heartfelt gratitude to Sushant for his instrumental role in shaping the remarkable journey of Third Wave Coffee thus far.”
“As Sushant transitions to his new role on the board, we are confident that his guidance and strategic insights will continue to steer us towards even greater success. Together, under Sushant’s continued guidance and Rajat’s leadership, we are poised to embrace new opportunities and drive the company to new heights.”
source: http://www.gcrmag.com / Global Coffee Report / Home> News / by Dominic Morell/ March 26th, 2024
Love your morning dose of coffee? Well, it may help you avoid the risk of Parkinson’s disease, claims a study.
The study, published online in the April issue of the journal Neurology, included 1,84,024 people aged 35-70 years, who were followed up for a median duration of 13.1 years.
The findings showed that the highest coffee consumers had 37 per cent reduced risk of getting Parkinson’s disease, compared to those who do not drink.
“This study demonstrates that the neuroprotection of coffee on Parkinson’s disease is attributed to caffeine and its metabolites by detailed quantification of plasma caffeine and its metabolites years before diagnosis,” said the researchers from Utrecht University in the Netherlands.
Further, drinking caffeinated coffee lowered risk of the neurodegenerative disease by 43 per cent. The team, however, found no association with decaffeinated coffee.
“Good news for coffee lovers. Caffeinated coffee consumption over a long-term has the potential to lower the risk of Parkinson’s disease,” Dr Sudhir Kumar, a neurologist at Indraprastha Apollo Hospitals in Hyderabad, wrote on X.
“Neuroprotective effect leading to lower risk of Parkinson’s Disease was attributed to caffeine and metabolites such as theophylline and paraxanthine,” he explained.
source: http://www.daijiworld.com / Daijiworld / Home> Health / by IANS / March 25th, 2024
Price of robusta coffee has dropped due to supply shortage and global factors.
Farm workers harvesting coffee beans at a plantation in Wayanad district of Kerala. | Photo Credit: E.M. MANOJ
The robusta coffee farmers in south India are jubilant post-harvest with their produce fetching an all-time high price.
The farmgate price of raw robusta coffee berries touched a record ₹172 a kg in Wayanad market on Saturday, as against ₹115 a kg during the corresponding period last year. Meanwhile, spot price of robusta coffee beans stood at ₹315 a kg, up from ₹210 during the same period in 2023. The price was ₹80 and ₹145 a kg for raw berries and beans respectively in March 2022.
Though the harvest is almost complete, there has been a huge shortfall in the supply of coffee to the market this year, thereby contributing to the increase in coffee prices, says sources.
Multiple factors
“We expect a decline of 30% in the production of robusta this year owing to climatic vagaries, especially the scanty blossom shower in robusta growing regions last year,” sources said.
A sharp decline in production of robusta coffee — nearly 2 million bags — in Vietnam, a major Robusta coffee growing country, has also attributed to the increase in price, the sources added. Robusta coffee production in Indonesia too dipped sharply this year, the sources added.
Notably, the price of Arabica variety of coffee has dropped below the price of robusta coffee. The farmgate price of the Arabica variety coffee was ₹305 per kg on Saturday. Though the Arabica variety always fetched a premium price in the market, it is the robusta variety that is witnessing an increase due to its low availability for the first time.
Farmers suspect that the production may decline by 25% to 30% next year too owing to a dearth of backup showers in many robusta coffee growing areas in the country.
Wayanad in Kerala, which is the largest robusta coffee producing district in the country after Coorg in Karnataka, received a rainfall of 29.3 mm in the first week of January. Major parts of the district received no rain since then.
The January showers helped in the blossoming of robusta coffee plants, farmers say. But the absence of backup showers, a major factor in the formation of berries, is a concern.
According to Coffee Board of India, the total production of coffee in the country during the 2022-23 fiscal was 3,52,000 tonnes, including 2,52,000 tons of robusta coffee.
source: http://www.thehindu.com / The Hindu / Home> News> India> Kerala / by E M Manoj / March 24th, 2024
In a significant development for the Indian coffee sector, the Coffee Board of India organised a buyer-seller meeting at Dubai, marking a new chapter in the industry’s global expansion.
The event, held on the sidelines of Gulfood 2024, was jointly organised by the Indian Embassy in UAE and the Coffee Board of India. Speaking on the Occasion, Indian Ambassador to the UAE, Sunjay Sudhir, highlighted Dubai’s strategic role as a global trade hub, and the upcoming Bharat Mart at Jebel Ali free zone as enablers for India’s global coffee ambitions. He also emphasized Dubai’s unique position as a logistical powerhouse, boasting a busy port and efficient airport, offering an ideal platform for Indian coffee producers to showcase their diverse blends directly to international buyers and establish lasting brands.
The meeting featured a presentation by KG Jagadeesha, CEO of the Coffee Board of India, who provided a comprehensive overview of the country’s coffee industry. He highlighted the vast coffee plantations spanning over half a million hectares, supporting millions of farming families, and the impressive production and export rates that surpass domestic consumption. Jagadeesh emphasized India’s significant contribution to the international coffee market, particularly as a leading exporter of instant coffee.
India’s coffee industry, with its balanced production of Arabica and Robusta beans, has witnessed remarkable growth since the establishment of the Coffee Board in 1950. Notably, 35% of the country’s coffee exports now comprise value-added and specialty coffees, showcasing a shift towards premium offerings. India’s coffee is unique in the sense that it is shade-grown and the Robusta variety is treated at par with Arabica in the Western market. This event not only celebrated the distinct flavors and rich heritage of Indian coffee but also marked a strategic move to leverage Dubai’s logistical strengths.
source: http://www.newsonair.gov.in / News Services Division, All India Radio / February 22nd, 2024
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