Coffee prices decline despite increase in domestic demand
India, Feb. 15 -- Despite a single-digit growth rate for Coffee demand in the domestic market in the past few years prices are consistently falling due to oversupply. Five years ago the price of a 50-kg bag of raw Coffee was around Rs 9 000. Now it is selling 30 per cent cheaper at Rs 6 000-6 500 which is much below the cost of production.In the export market prices dropped to around $1 500 per tonne from $1 800-2000 last year. Coffee growers in India export 80 per cent of their output.Global prices were dropping mainly due to higher exports from Brazil as its production was high and a weak currency made exports lucrative.As far as domestic market is concerned demand is growing in high single digits. It is decent growth but underwhelming re...
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