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Possibility of lower output pushes up Robusta costs

India’s Robusta coffee output is expected to fall in the current financial year, pushing up prices, reports The Economic Times. A bumper crop last year and erratic rainfall have been cited as the reasons for the expected decline in production. The Coffee Board of India has estimated the production of Robusta to be about 2.17 lakh tones this year, while coffee growers estimate it to be less than two lakh tonnes.

Karnataka Planters’ Association states that Robusta output in Coorg, one of the major producers of coffee in the state, has been poor. The Wayanad Coffee Growers Association states that the same is the case with the output from Wayanad, which commonly produces 40,000-50,000 tonnes per annum. Robusta output in Wayanad is expected to be just about 32,000 tonnes in the current year.

Rajesh, Secretary of the Wayanad Coffee Growers Association, stated: “Normally after the harvest and sale, 50 percent will be left in the market. But this time, only 30 percent is remaining."

India produces almost 3.22 lakh tonnes of coffee in total, of which 70 percent is of the Robusta variety. In anticipation of lesser output, the prices of Robusta cherry has gone up from INR2,400 to INR3,000 for a 50kg bag.

Vietnam, the largest producer of Robusta coffee, has had a bumper crop this year, due to which prices of the coffee are low in the global market.

Sources: Economic Times