The Indian Post Online
Buisness

Karnataka’s coffee growers breathe a sigh of relief as prices rise and a cup of coffee will cost more

<p>The cost of coffee will now be the item that throws people’s finances into disarray, after the disruption of budgets caused by tomato prices throughout the nation.<img decoding=”async” class=”alignnone wp-image-122041″ src=”https://www.theindiaprint.com/wp-content/uploads/2023/08/theindiaprint.com-karnatakas-coffee-growers-breathe-a-sigh-of-relief-as-prices-rise-and-a-cup-of-coffee-will-cost-more-images-37-11zon.jpg” alt=”theindiaprint.com karnatakas coffee growers breathe a sigh of relief as prices rise and a cup of coffee will cost more images 37 11zon” width=”1017″ height=”610″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2023/08/theindiaprint.com-karnatakas-coffee-growers-breathe-a-sigh-of-relief-as-prices-rise-and-a-cup-of-coffee-will-cost-more-images-37-11zon.jpg 290w, https://www.theindiaprint.com/wp-content/uploads/2023/08/theindiaprint.com-karnatakas-coffee-growers-breathe-a-sigh-of-relief-as-prices-rise-and-a-cup-of-coffee-will-cost-more-images-37-11zon-150×90.jpg 150w” sizes=”(max-width: 1017px) 100vw, 1017px” title=”Karnataka's coffee growers breathe a sigh of relief as prices rise and a cup of coffee will cost more 3″></p>
<p>After nearly ten years, the coffee harvest has started to bring in strong prices on the global market as a result of several circumstances, and this development has cheered up coffee growers who have struggled with the commodity’s stagnant value for ten to fifteen years.</p>
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<p>The majority of India’s coffee is produced in the hilly south Indian states of Karnataka (71% of total output), Kerala (21%), and Tamil Nadu (5% of total production).</p>
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<p>The cost of coffee is anticipated to increase in hotels, eateries, and coffee shops as prices continue to rise. In recent times, milk prices in Karnataka have also increased.</p>
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<p>In most hotels, a cup of coffee currently costs between Rs. 12 and Rs. 15. While prices at upscale coffee shops and hangouts have also increased by 10 to 20%, so have those from roadside sellers.</p>
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<p>Fourth generation coffee grower and proprietor of Biligiri Coffee Estate in Alduru, Chikkamagaluru district, Sujith Vajuvalli Biliyappa Gowda, told IANS: “We are receiving Rs 6,200 every 50 kilogram bag. We received between Rs. 3,500 and Rs. 3,600 last year. The price each bag has increased by Rs 2,000. I predict that by the next year, coffee costs would have increased by another Rs 1,000.</p>
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<p>When the price of arecanut and pepper increased, coffee’s market value decreased.</p>
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<p>Planters had a problem because while the selling price was low, the cost of labor, manure, and pesticides increased. The price of coffee stayed between Rs 2,800 and Rs 3,500 for roughly 10 to 15 years. The cost of labor has increased from 150 to over 450 rupees since then. The tree shading, which back then cost Rs. 300, now costs Rs. He said that when it became a burden, bank loans were used to handle it.</p>
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<p>Gowda noted that the planters are now conserving some money.</p>
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<p>Every year, there is more coffee produced in India. Since there was less rain this year than there was last year, there has been a decline. Due to its sensitivity, coffee is a crop that does not produce well in hot or wet weather. He said that certain portions are impacted while others are not.</p>
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<p>Gowda said that there are nations that produce much more coffee than India, therefore the Indian market won’t have an impact on global market patterns. A lot of countries, including Brazil, Guatemala, Ethiopia, and Vietnam, cultivate coffee. Vietnamese Robusta coffee farmers are converting to other types of crops. They are growing unusual crops like avocados and dragon fruits, which sell for considerably more money than coffee could.</p>
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<p>on light of this, “the Robusta crop is fetching high rates on the market. The pricing is affected by changes in the dollar exchange rate; local market and the global market are unrelated. The coffee market takes a chance with the weather. The cost of coffee increases if Brazil has a drought or flooding. they are now somewhat better prices than they were previously, Gowda said.</p>
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<p>Due to poor prices, throughout a ten-year period, tiny coffee growers who owned five to ten acres of coffee plantation suffered. They turned their homes into home stays, managed their money by luring visitors, and bet their future on the rise in coffee prices.</p>
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