Indian Coffee Planters Expect High Prices for Four-Five Years

• Ajoy Thipaiah, vice president of the United Planters’ Association of Southern India, predicts high coffee prices for the next two years due to global decline in coffee production.

• Major producing countries like Brazil, Mexico, Columbia, and Vietnam are experiencing a decline in coffee production due to adverse climatic conditions.

• Indian Arabia coffee production has also dropped by 50% due to floods and droughts.

• KPA chairman K.G. Rajeev emphasizes the need for upward pressure strategies on prices to mitigate the impact of climate change and ensure sustainable growth in the coffee sector.

• The planters’ fraternity also seeks stable prices for 4-5 years to repay outstanding loans.

• Domestic coffee prices have seen an increase of 36 to 48% in January-June 2024, with Arabica prices moving up 2.3% to 7.7%.

• The plantation industry faces challenges including rising costs, labour shortage, lack of modernisation, disease and pest outbreaks, and rise in man-animal conflicts.

• The planters’ body has requested government support for tax exemptions for development, sustainable practices, and infrastructure development.