Coffee prices soar in India 

News Excerpt:

Vietnam and Brazil have both seen some of their worst droughts this year, which has led to large drops in coffee production.

More about the news:

  • Robusta coffee bean prices have surged in India, matching premium arabica bean prices due to reduced production in major producers like Brazil and Vietnam.

Reason for the rise in prices of Coffee:

  • The reason for high prices is the demand for exports in the international market. 
  • Other coffee-growing countries like Vietnam, Brazil, Indonesia, Columbia, Ethiopia, etc. have reported a drop in production due to droughts in the backdrop of El Nino.
    • Vietnam, the second-largest coffee producer in the world, has seen a drop in production by about 20%, after experiencing its worst drought in a decade. The drop in production increased prices by about 15%.
    • In Brazil too, coffee production dropped by about 15% after drought conditions impacted plantations and increased costs by about 40% in some areas.
  • Apart from demand from the international market, increasing labor costs, input costs, and human-elephant conflict leading to losses are also some reasons why coffee prices have increased in recent years.

Arabica coffee vs Robusta coffee: The Differences

  • Arabica has less caffeine content than Robusta coffee. While Arabica is considered superior to Robusta for its creamy layer.
  • Arabica has a sweeter, smoother taste to it. Robusta is generally more bitter and harsher on the taste buds.
  • Arabica is costlier than Robusta because of the specific growing conditions it requires.
  • Robusta plants are sturdier in the face of pests and diseases. Arabica, not so much.
  • Arabica plants need more skilled manual work during cultivation & processing, while the cultivation & processing process for Robusta is generally easier.
  • Robusta coffee accounts for over 70% of coffee production in India. The country exports over 70% of its coffee.
  • The Arabica coffee species was introduced in the Baba Budan Giri hill ranges of Karnataka in the 17th century.

Coffee Production in India:

  • In India, coffee is grown in the shade and in a mixed cropping pattern. This gives it a unique taste as it grows among diverse crops, under greenery, and with a higher carbon sequestration area.
  • India contributes about 15% of the world’s coffee. 
  • In India, coffee is mainly produced in Karnataka, Kerala, Tamil Nadu, Andhra Pradesh and Odisha. Among all coffee-producing states, Karnataka stands on top with a share of more than 70% of the total coffee produced in India. 
  • Karnataka’s primary coffee-growing areas include Chikkamagaluru, Hassan, Madikeri and Kodagu.

Top Coffee producing countries in the World:

  • Brazil is the largest coffee-producing country in the world. 
  • The top five coffee-producing nations, Brazil, Vietnam, Colombia, Indonesia and Ethiopia account for nearly 75% of the coffee grown in the world.

El Nino:

  • El Nino is a climate pattern that describes the unusual warming of surface waters in the eastern equatorial Pacific Ocean. Trade winds and atmosphere are also impacted by El Nino.
  • El Nino was first recognized by fishers off the coast of Peru as the appearance of unusually warm water. 
    • Spanish immigrants called it El Nino, meaning “the little boy”
  • El Nino is the “warm phase” of a larger phenomenon called the El Nino-Southern Oscillation (ENSO). 
    • El Nino has an impact on ocean temperatures, the speed and strength of ocean currents, the health of coastal fisheries, and local weather from Australia to South America and beyond. 
    • El Nino events occur irregularly at two- to seven-year intervals.

 

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