Coffee prices at hotels to go up by month-end

BENGALURU: Many people start their day with a cup of coffee. But before taking that hot sip at a hotel, think twice. The price of coffee is increasing day by day and it’s burning a hole in people’s pockets.

According to Karnataka Hotel Association vice-president Madhukar Shetty, “Everybody likes to drink coffee in the morning. Their daily routine starts with coffee. There are a growing number of coffee outlets and hotels. The price of coffee powder has increased by Rs 100 per kg from last year, and it may increase again by Rs 100 by the end of this month”.

“The generally used coffee power is — 80 pc coffee blended with 20 pc chicory. The price ranges from Rs 600 to Rs 1,000 per kg which was Rs 480-Rs 580 till last December. Now the price range has gone up to Rs 750 to Rs 800. There is no hope of reducing the coffee price. It may increase Rs 100 to Rs 150 in March. Hence, coffee prices will increase automatically”. Madhukar Shetty said that the price of coffee may increase further due to various other factors too.

Indian Coffee Roasters Association president Perikal M Sundar also expressed concerns about the price hike. He said, “The coffee bean prices are increasing day by day. International coffee production has decreased by 20 pc due to climate change. Vietnam and Brazil are the top coffee producers in the world and India is the 7th largest producer”.

“Coffee is needed for instant coffee and powder. Moreover, coffee consumption has increased internationally. The prices of coffee powder have almost doubled and there are indications of a further price increase in March by Rs 100 per kg. The association is planning to increase the price to stay in business. The price of premium coffee powder has increased to Rs 900-Rs 1,000 per kg”.

The reasons for the increase in coffee prices are:

International coffee production has decreased by 20 pc due to climate change.

Excessive rainfall in major coffee-producing countries like Vietnam and Brazil has damaged coffee crops.

There is a high demand for Indian coffee in foreign countries, with 60 pc of Karnataka’s coffee produce being exported.