Arabica Coffee Price Drop Sends Shockwaves Among Karnataka Farmers
Arabica coffee stock in Sakaleshpur, Karnataka, has dropped significantly during market opening, causing concern among farmers. The dwindling stock levels have led to market fluctuations and prices, with Arabica chari rates plummeting by Rs. 150 to Rs. 200 per bag and Arabic parchment prices dropping by Rs. 4500 to Rs. 5000 per thousand. The decline in Arabica coffee prices is attributed to Brazil’s excessive production, leading to surplus availability in the market. Arabica coffee cultivation is more challenging than Robusta coffee, which is known for its cold resistance. Arabica coffee holdings have doubled in the last two years, attracting growers to replace robust coffee plantations. The ongoing Arabica coffee harvesting season faces challenges, with prices plummeting upon entry into the market, leading to difficulty in selling produce. The adverse impact of the price reduction in the London market has reverberated in the local market, highlighting the intricate interplay of global market dynamics impacting local agricultural economies.
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Source: Coffee Talk