Coffee prices in India crash by 30% as strong Brazil harvest weigh in

Wayanad: The price of coffee in India has crashed by nearly a third, with Robusta beans falling to ₹180 per kg from ₹284 in March. According to the Coffee Board of India, Robusta prices have dropped by 30 per cent, while Arabica has seen a 17 per cent decline.

The price dip is largely attributed to a strong ongoing harvest in Brazil, the leading producer of coffee in the world. This, coupled with pressure on Indian farmers to sell stock and meet harvesting costs, has decreased the profits. 

According to Prasanth Rajesh, Director of the Wayanad Coffee Growers' Association, the harvest in Brazil is already 50 per cent complete. Highlighting Brazil's dominance in the global market, he noted that while India produces just 5 million bags annually, Brazil contributes around 56 million, nearly a third of global production. "So, any development in Brazil’s coffee sector significantly impacts global prices, especially in India," he said. 

He also pointed out that 30 per cent of a grower’s annual cost comes during harvest season, prompting both Indian and Brazilian farmers to sell early crops to cover expenses, with the rest held back for better prices.

Industry players say that last season’s price surge was driven by fears of a shortfall in Brazil, but with improved yields and favourable weather this year, both Brazilian and South Indian production are expected to rise.

Moreover, ideal climatic conditions in India's key coffee-growing regions like Wayanad, Nilgiris, and Coorg have also contributed to the price dip, with experts expecting a better harvest next season. Dr M Karuthamani, Joint Director (Extension) of the Coffee Board for Kerala and Tamil Nadu, said domestic production forecasts have added to the downward pressure. "Most coffee regions are set for a strong harvest; the pre-blossom and post-blossom showers this year have been near perfect," he noted. 

Karuthamani said that Wayanad alone is expected to produce around 60,000 metric tons, mostly Robusta. However, he ruled out a further price fall, citing strong global demand that could absorb Brazil’s harvest-driven market release.

However, planters are not hopeful of a bumper harvest next year. "Though experts predict a bumper harvest next year, the ground reality is different. Many farms in the region saw widespread bean drop due to hostile post-blossom weather conditions," said planter Saju Aikkaraparambil.

Meanwhile, coffee traders are feeling the heat of price drops as farmers stay away from the market. Agencies like Perfecto Natural, which offer better rates for organic coffee under the Fair Trade premium scheme, say growers are reluctant to release stocks despite high demand. "We’re offering ₹207 per kg for dry beans this week, but the response has been lukewarm," said Joy NK, a field staff member. "There’s strong demand now, especially as the supply from Brazil has slowed," he added.

During the last harvest season, dry Robusta coffee prices surged from ₹80 to a record ₹284 per kg. While small and mid-sized farmers sold their stock once prices crossed ₹250, many large growers and traders held out, expecting prices to breach ₹300.