Indian Coffee Growers worries as high production forecast in Brazil and Vietnam
Forecast of increased global production for next season in major coffee growing countries is seen adding to the worries of the Indian coffee-growers.
Growers are already in distress due to low prices, rising cost of cultivation and an erratic weather pattern.
Growers worries that existing low prices for coffee from last two season would follow into the new crop year beginning October and prices may fall further as increased crop is forecasted in almost all major growing countries.
Prices of the arabica parchment, which ruled at around ₹9,500-9,700 per 50 kg bag in January 2017, have now dropped to around ₹6,400-6,500 levels, says Bose Mandanna, a large grower in Suntikoppa.
US Department of Agriculture recently forecast that supplies would increase by 11.4 million bags of 60 kg each in 2018-19 to a record 171.2 million bags, the International Coffee Organisation expects the current year’s production to increase by 1.2 per cent at 159.66 million bags on higher production in eight of the ten large producers like Brazil, Vietnam etc.
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