What’s making your morning coffee costlier? Check details here
International coffee prices are at a 10-year high. The Arabica prices have been rising more than Robusta. Back in September, Robusta was trading at a four-year high, above $2,040 per tonne, while Arabica traded at a 7-year high back in July. Climate concerns, COVID-related disruptions and the trade congestion altogether have been keeping the coffee prices higher.
International coffee prices are at a 10-year high. The Arabica prices have been rising more than Robusta, but all of this has impacted your cup of coffee for sure.
Back in September, Robusta was trading at a four-year high, above $2,040 per tonne; while Arabica was trading at a 7-year high in July.
Climate concerns, COVID-related disruptions and the trade congestion altogether have been keeping the coffee prices higher.
The top producing countries here, Brazil for one has had frost, drought and that has impacted their crop. Colombia has seen excessive rains, also impacting crop there, Vietnam has faced shortage of shipping containers. So even as there's availability of surplus there, it really is about the exports which haven't really picked up.
Ethiopia, another major producer has seen civil wars impacting supplies over there.
India, meanwhile is the seventh largest producer of coffee and 70 percent of Arabica that we produce is exported, so we stand at an advantageous position right now.
The USDA (US Department of Agriculture) in its report said that this year, you could be looking at both, coffee consumption and production rising. Looking at the numbers, for the last couple of years now, 2020-21 crop at 8.50 percent is higher than the last 10 years' average.
Even with all of these concerns, there is availability in the market and the production year-on-year is looking good, so are the global trade numbers. Last year, it was 127 million bags, this season has done 129 million bags.
The consumption numbers also are looking quite strong and this is the data from the International Coffee Organisation. They say that the world coffee consumption has been rising steadily for the last 10 years now. So while last year we consumed 164 million bags, this year is going to be 167 million bags. So the numbers on both sides do look strong.
Also Read: Oil prices fall on expectation of oil release from reserves to cap soaring gasoline prices
(Edited by : Dipikka Ghosh)
First Published: Nov 17, 2021 1:12 PM IST
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