Arabica and Robusta rates tumble sharply amid export halt, global oversupply, and Israel-Iran tensions, pushing growers in Hassan, Kodagu, and Chikkamagaluru into uncertainty
Hassan: The ripple effects of the ongoing geopolitical tensions in the Middle East are now being felt in Karnataka’s key agricultural sector, as coffee prices have sharply declined by nearly 20 per cent, pushing growers into distress. The crisis comes as export channels face disruptions amid the conflict involving Israel and Iran, severely impacting India’s coffee trade.
The downturn has hit just when farmers were witnessing record-high prices after nearly a decade, raising fresh concerns across major coffee-growing regions like Hassan, Kodagu, and Chikkamagaluru.
Prices Crash After Decade-High Rally
Coffee growers, who had been holding back stocks anticipating further price rise, are now facing sudden losses as the market reversed sharply within weeks of the conflict escalation.
- Arabica Coffee: Dropped from ₹29,000 to ₹23,000 per 50 kg bag
- Robusta Coffee: Fell from ₹12,000 to ₹8,000 per 50 kg bag
This steep decline has left farmers grappling with uncertainty, especially those who delayed selling in hopes of better returns.
Export Halt and Global Oversupply Add to Crisis
Industry experts point out that the crisis is not solely due to geopolitical tensions. While export disruptions triggered by the conflict have stalled shipments, a bumper harvest in global coffee giants like Brazil and Vietnam has flooded the market with supply.
Last year, poor harvests in these countries had boosted demand for Indian coffee. However, the current global surplus, combined with export bottlenecks, has intensified the price crash, worsening the situation for domestic growers.
Livelihoods at Stake Across Karnataka
Karnataka contributes nearly 70 per cent of India’s total coffee production, supporting lakhs of families dependent on the crop. The sudden downturn is now threatening livelihoods in plantation belts, with farmers demanding urgent intervention.
H. D. Mohan Kumar, associated with the International Coffee Organisation, mentioned the need for immediate relief.
“The central government must extend special financial support to coffee growers, similar to assistance provided to exporters,” he said.
Ceasefire Hope, But Uncertainty Remains
A recently announced two-week ceasefire between the United States and Iran has raised hopes of easing tensions and restoring export routes. However, industry stakeholders remain cautious, noting that market stability will depend on sustained geopolitical calm and global demand recovery.
Farmers Await Government Relief
With prices falling and exports stalled, growers are now looking towards the central government for relief packages, price stabilization measures, and export support, as the sector faces one of its toughest phases in recent years.
