Arabica coffee prices decline prior to harvest

The prices of raw arabica coffee have begun to decline due to rising inflation, improved supply, and recessionary fears as the harvest season is about to start.

A few weeks back farmgate prices of arabica coffee in Karnataka had reached as high as Rs.17,000 per 50 kg bag. However, it has now declined to around Rs.14,000 which is estimated to have been a drop of around 15%.

A certain arabica grower in Suntikoppa said, “The global demand for arabica coffee is declining day by day and now it has fallen from 242 cents per pound to 169 cents per pound. The Coffee Board had estimated the coffee crop of 2022-23 to be 3.93 lakh tonnes, including 1.16 lakh tonnes of arabicas and 2.77 lakh tonnes of robustas and now the harvest is expected to be of considerable loss.