Indian coffee producers are rejoicing: global robusta production is declining, and prices are reaching record levels.

The Indian coffee industry is experiencing a boom as the prices of robusta coffee beans have soared to an unprecedented 10,080 rupees per 50 kg bag by the end of the week. This price surge marks a historic high since the establishment of coffee plantations in the Western Ghats region by the British in the 1860s.

Unlike the relatively stable prices of arabica, known for its creamy layer in a shot, the prices of robusta have typically fluctuated between 2500 to 3500 rupees per 50 kg bag for almost 15 years.

The rise in robusta prices brings relief and joy to coffee growers, especially those with smaller land holdings who primarily cultivate robusta due to lower costs compared to arabica. These growers have faced challenges such as inconsistent rainfall, crop damage from wild animals, and rising costs of inputs and labor over the past decade.

Mr. Nitin, a coffee planter in Chikmagalur, expressed his joy, saying to TOI: "I never imagined, even in my wildest dreams, that prices would reach 10,000 rupees." Nitin has already sold part of his stock in anticipation of further price increases.

According to Nanda Belliappa, the chairman of the Kodagu Planters Association, the rise in robusta prices can be explained by the basic principles of supply and demand.

Sources in the Indian Coffee Board also explain the rise in prices due to a shift by major robusta coffee producers, such as Vietnam and Indonesia, towards more profitable crops like dragon fruit and avocados. Additionally, there is an increasing demand for coffee in the cosmetics industry.

In India, Karnataka, Kerala, and Tamil Nadu together contribute 83% of coffee production, with Karnataka accounting for 70% of the total volume. However, coffee plantations in Karnataka have faced challenges in recent years, with many farmers selling their land to developers or converting it into tourist enterprises due to declining profits and a labor shortage.

Somaya, a coffee farmer, told TOI: "There is a significant shortage of skilled workers to tend to the estates, accompanied by a large increase in labor costs." Planters are increasingly relying on migrants from Bengal and Assam, who have experience working on tea plantations.

Moreover, the invasion of wild animals poses a significant threat to coffee plantations, as elephants, bison, monkeys, and large squirrels damage crops in search of food and water.

Despite these obstacles, the rise in prices for robusta coffee offers a glimmer of hope for Indian coffee growers, signaling a potential turnaround for the industry after many years of struggle.