Prices of raw coffee stabilise

With only 10 per cent of the 2.88 lakh tonnes of the country's raw (uncured) coffee production left at the estates, prices at farm-gate trading have stabilised with prices of certain varieties falling and some rising compared to earlier this year.

According A K Devaiah, manager-coffee operations, ITC, prices of raw (uncured) coffee at farm-gate level, which had shot up early this year, has somewhat stabilised.

During January-February this year (crop year 2006-07), farm-gate prices of Arabica Parchment had shot up to Rs 5,000 (for 50 kg bag) and gradually fell thereafter. It is now trading at around 15 per cent lower, at Rs 4,250. Arabica Cherry is up 18.75 per cent, trading at around Rs 1,900 compared with Rs 1,600 early this year.

On the Robusta front, Robusta Parchment has seen a 6.57 per cent rise in prices, trading at around Rs 4,050 compared with Rs 3,800 early this year. Meanwhile, Robusta Cherry prices declined 6 per cent to trade at Rs 2,350 from a high of Rs 2,500.

Giving the reasons for volatility in prices, Vikram Kuttaiah, a farm gate trader said, "Brazilian drought scare and Vietnam releasing its crop late led to exporters buying coffee at higher prices."

"During the volatile crop year, some coffee grades moved up 25 per cent in one year, and some grades were down 15-18 per cent. But on the whole, planters got good remunerative prices for their produce after a gap of five years," said B L Harish, proprietor, BLAN Coffee, Somwarpet.

According to Coffee Board statistics, raw coffee prices in August this year (2007) for Arabica Parchment in Chikmagalur was marginally up at Rs 4,088 (for 50 kg bag) compared with Rs 4,000 during the same period last year (2006).

In Sakleshpur, it was higher by 3.32 per cent at Rs 4,042 compared with Rs 3,912. In Madikeri, it was 6.02 per cent up at Rs 4,155 and in Tamil Nadu it was down 1.70 per cent at Rs 3,870.

Arabica Cherry prices also saw a rise to the extent of 4.21 per cent in Chikmagalur at Rs 1,980 compared with Rs 1,900 for the same period last year.

In Sakleshpur, it was up 5.60 per cent at Rs 1,960 compared with Rs 1,856, while in Madikeri, prices were up 3.53 per cent at Rs 1,960 compared with Rs 1,893. In Tamil Nadu, it was down 11.58 per cent at Rs 1,602 compared with Rs 1,812.

Prices of Robusta parchment was up 21.60 per cent at Rs 3,405 compared with Rs 2,800 in the same period last year. In Sakaleshpur, it was 27 per cent higher at Rs 3,588 compared with Rs 2,825.

Robusta Cherry prices in Chikmagalur was down 21.48 per cent at Rs 1,845 compared with Rs 2,350 for the same period last year. In Sakaleshpur, it was up 18.38 per cent at Rs 1,835 compared with Rs 1,550.

In Madikeri, Cherry prices went 18.05 per cent up at Rs 1,890 compared with Rs 1,601 and in Wynad (Kerala), it was up 29.03 per cent at Rs 1,960 compared with Rs 1,519 for the same period last year.