Spike in coffee prices in K'taka markets due to severe crop losses in Brazil, Vietnam: Expert

Coffee prices in Karnataka's Kodagu and Chikkamagaluru markets that recently surged to historic levels were driven by a global supply crunch, according to an expert familiar with the matter.

- Coovercolly Indresh

BENGALURU: Arabica Parchment, a premium coffee variety, soared to ₹29,600 per 50 kg bag in Chikkamagaluru, while Kodagu recorded an even higher price of ₹29,800, marking an unprecedented peak.

The sharp rise on February 11 was attributed to severe crop losses in Brazil and Vietnam—world's leading coffee producers—due to adverse weather conditions. According to experts, that recovery will take at least five to eight years, as new coffee plants require time to mature and yield produce.

Rajiv Kushalappa, managing director of Leonflix Fintech Ventures Pvt Ltd, a Bengaluru-based coffee export firm, pointed to the impact of global shortages. "Thousands of coffee estates have been destroyed in Brazil and Vietnam, leading to a severe supply crunch in the international market. With no buffer stock available this year, prices have skyrocketed and are likely to remain high for some time," he said.