Farmgate prices of Arabica parchment, which were around ₹29,000-29,400 for a 50 kg bag during November, are now around ₹24,000 for a 50 kg bag. Photo courtesy: Reuters
A sharp decline in Arabica coffee prices by almost a fifth since the start of the 2025-26 crop year has caused concern among growers. In line with the fall in global prices, taro prices have declined by about 20 per cent, while robusta prices have declined marginally since November last year.
Prices have declined in recent days as a result of improvements in supply across all producing origins, especially Brazil, the largest Arabica producer.
“In a matter of a few months, prices have fallen from around $3.75 per pound to below $3. Such high price fluctuations create undue uncertainty in the supply chain. Producers who require immediate working capital are forced to sell at lower prices and buyers are unwilling to take the risk of paying market value for fear of a further fall in prices,” said Sahdev Balakrishna, chairman of the UPASI Coffee Committee.
Farmgate prices of Arabica parchment, which were around ₹29,000-29,400 for a 50 kg bag during November, are now at around ₹24,000 for a 50 kg bag. Similarly, Arabica cherries which were trading between ₹14,000-15,700 in early November are now around ₹12,000. While the prices of robusta sheepskin have remained largely stable at around ₹17,000 level, the price of the widely produced variety robusta sheepskin has declined from the level of ₹10,700-11,600 to around ₹9,650-10,500.
Karnataka Planters Association President M Salman Baseer said, “The sudden fall in prices is going to have a big impact on the growers, because it is a big fall since the beginning of the season. The growers who can do it, who have the capacity to hold their own, are just looking at it, but a lot of people are trying to sell because you need to run it as well as the costs are rising.”
labor costs rise
Meanwhile, labor costs continue to rise despite a sharp decline in coffee prices, Balakrishna said.
“Producers’ costs such as picking costs, production costs all had increased. Seeing the rise in prices, laborers started demanding more per kilogram. We are already giving them good prices – more than the declared labor wages,” Basir said. The colocasia harvest is complete and the robusta crop should finish in the next few weeks.
Praveen Kolimarla of Agrani Coffee & Commodities said global coffee markets are showing early signs of slackening on the supply side, with Brazil and several other producing countries reporting strong harvests. The latest estimates from Brazil indicate 17 percent higher production, boosting hopes for a bigger crop. Other major countries, including Vietnam, Indonesia, Uganda, Ethiopia, Central America and India, are also seeing improvement in production, suggesting that adjustments at the farm level are gradually increasing supply.
Despite the increase in direct supply, the market remains upside down. Following the recent improvement in the crop outlook, international coffee prices have started to soften. While last year saw a similar price correction, the current cycle is different due to more visible inventory. He said market participants expect prices to remain lower in the near term.
Lower prices have led to increased buying interest from global traders and roasters. However, India remains apart from this. The gap remains high, creating a price mismatch that is hampering trading volumes. Meanwhile, growers are in no hurry to sell and are taking a wait-and-see approach, Kolimarla said.
Pramod Somaiya, a curer at Gonikoppa, said global coffee prices are largely being driven by terminal markets rather than physical trade dynamics. Despite nearly 25 per cent improvement in terminal prices, there has been no commensurate decline in consumer prices, suggesting that underlying demand remains intact. He said producers facing price volatility may need to strengthen collective marketing through cooperatives and producer bodies to improve direct engagement with buyers and enhance price realisation.
Published on February 12, 2026
