Kottayam: Coffee lovers in Kerala and across India are facing a steep increase in prices as the cost of coffee powder has surged to ₹880 per kilogram, marking a staggering rise of over ₹400 in just a year. The sharp escalation in prices is driven by a combination of factors, including a decline in domestic coffee production, higher raw material costs, and the increasing commission charged by intermediaries.
Over the past three months alone, coffee powder prices have risen by ₹150, having already surpassed ₹700 per kilogram in November 2023. At the beginning of last year, the price stood at ₹450 per kilogram but gradually climbed to ₹600 within six months. Despite offering rates above the market price, leading coffee brands and retailers are struggling to procure quality coffee beans, as supply shortages persist.
The market rate for coffee berries currently stands at ₹265 per kilogram, while coffee beans are priced at ₹450 per kilogram. However, traders claim they are forced to pay even higher rates when sourcing directly from middlemen, with prices reaching ₹280 for berries and ₹480–₹485 for beans. This inflated cost is largely due to the rising commission charged by intermediaries.
Central Kerala traders primarily source their coffee beans from High Range, Wayanad, and Coorg—key coffee-producing regions. However, production levels have dropped compared to previous years, exacerbating the supply crisis. As a result, consumers are now paying record-high prices for coffee powder, with premium brands surpassing ₹90 per 100 grams.
Adding to consumer woes, coffee powder ground and sold in local mills is also witnessing a steep hike, now retailing at ₹220 per 250 grams. Given the ongoing market conditions, industry experts predict further price increases in the coming months. If the current supply constraints persist, coffee enthusiasts may have to brace themselves for even higher prices in the near future.
