Coffee price fall fears as rains bring little rain in many places

Kayapanda Shashi Somaiah

Madikeri, Feb. 26: This year, the coffee harvesting work is almost complete amidst many difficulties. Coffee growers across the district have faced a shortage of workers amid high wages, and they are struggling to harvest their harvest. Along with this, this time there is a day-to-day difference in the price of coffee, and the price is falling, which is one reason for concern.

The EP rate (Estate Pound) that was around 500 last year has not crossed the 400 mark this time. This time, the EP rate was only 395-399. That too, it was at this rate only at the beginning of the coffee harvesting, but now it is falling every day due to the fluctuations occurring in the international market every day. At present, the EP rate is Rs. 360-365 and there is no possibility of increasing. Compared to last year, the price has fallen by several thousand, and the growers are spending their days in uncertainty about what to do next. According to some people with experience in coffee trading, it is said that this situation is certain to continue for some time. Only during January-early February, exporters started to meet their demand (shipment), when the EP rate was available up to 390-399. Now it is said that exporters are not getting the expected demand. Coffee is currently coming from other coffee-growing countries, especially European countries, and since the price there is somewhat lower compared to Indian coffee, it is also said that coffee trading is focusing on coffee in those countries. 

It is being analyzed that the EP rate of Rs. 360-290 for Indian coffee locally is somewhat higher compared to foreign coffee. Some time ago, the price per metric ton was Rs. 4,500 dollars, but it has now come down to Rs. 3,640 dollars.

There are no more shipments till March. In addition, coffee from Uganda and Indonesia will also come to the market in April and May. Vietnam coffee is also 40 percent pending. Traders feel that all this is affecting Indian coffee. Due to uncertainties in the international market, exporters are not taking the initiative to stock up on coffee. Their experience is that they are buying only as much as they need according to demand. It is estimated that this year, India is producing as much coffee as last year. At present, the current price situation is likely to continue.

Rain brings good news...

There has been some rain in many places in Kodagu for the past few days, and the increased rainfall in some parts has benefited those in that area. However, in most places, the problem of only rain-fed irrigation has arisen. Due to this situation, hasty efforts to divert water are inevitable, and growers in most parts of the district are struggling for this.

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