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.
