Wake up and smell the coffee. Your morning cuppa is going to get costlier. As global prices continue to soar due to shortages of beans triggered by changing climate in key producing countries such as Brazil and Vietnam, roasters and coffee manufacturers in India are gearing up for yet another round of price hike soon.

Raw coffee prices in India are tracking the global trend and at a record high breaching the ₹27,500-level for a bag of 50 kg of premium bean Arabica parchment, whereas the Robusta parchment is hovering around the ₹23,600-mark.

Perikal M Sundar, Chairman, Indian Coffee Trade Association (ICTA), said auction prices have more than doubled since early 2024 and continue to scale new highs. Over the past one month, the Arabica parchment prices went up by ₹160 to ₹660 per kg. Prices of robusta cherries which doubled over the past year have now crossed the ₹500 levels.

Hitting new highs

For the consumer, the prices of premium roast and ground blends will cross the ₹1,000 kg per mark over the next few days, Sundar, who runs a roasting unit Modern Coffee in Bengaluru said. Now, the price of premium blends is hovering around ₹880-900 per kg. In October last, the trade had increased the prices by ₹100 per kg to various premium blends ranging from ₹700-900 levels. “We are having a trade meeting to soon decide the quantum of increase,” Sundar said.

Further, Sundar said the ICTA will soon approach the government seeking intervention to impose duty on coffee exports as it was necessary for the domestic businesses to survive. Over two thirds of the around 3.6 lakh tonnes of coffee produced in the country is exported.

Praveen Jaipuriar, CEO, CCL Products (India) Ltd, said, “Global green coffee prices remain volatile and continue to rise, driven largely by supply concerns in Vietnam. Indian coffee has followed a similar trend and is currently trading at all-time high levels… For our B2C vertical, which includes our own brand, we adjust prices in line with market competition. Over the past year, we have raised prices 2–3 times on large packs while striving to maintain stable prices for Low Unit Packs (LUPs).”

At a recent investor call, Suresh Narayanan, Chairman and Managing Director, Nestle India said, “Coffee has seen super inflation. Between 2024 and the previous year, point to point, it has seen 75 per cent rise in prices. If coffee prices are unrelenting then we will need to look at taking some calibrated price hikes as there is no way any company can completely absorb this kind of inflationary pressure…”