Chikkamagaluru: The ongoing conflict between the US, Israel, and Iran is directly impacting India’s coffee sector through variations in domestic prices. The planters and traders in the Malnad region, comprising Chikkamagaluru, Hassan and Kodagu districts, are confused about the market.Although the planters want to sell coffee beans, the majority of the traders are not coming forward to procure them due to confusion about exports. The war disrupted India’s coffee trade route. The United Arab Emirates is the fifth top export destination for Indian coffee.The closure of the Strait of Hormuz through Iran is hindering India’s coffee supply to European countries. As a result, coffee is being transported via a longer route, delaying its arrival in Europe.“Due to the closure of the Hormuz Strait, Indian coffee must be shipped through the Cape of Good Hope, via the southern part of Africa. This significantly increases the shipping costs of coffee, and the transit time is extended by 10 to 12 days, causing inconvenience to exporters,” said exporters.Companies that purchase raw coffee from growers process it into beans for export. Traders predicted a price drop due to the war one week ago. However, the expected price decline did not occur. Prices are decreasing due to shipping difficulties and additional costs.“One week ago, the price of Robusta coffee beans was up to Rs 370 per kg, but now it is around Rs 350. Nevertheless, there is still demand for coffee. The anticipated bumper Arabica coffee harvest in Brazil is also contributing to the price drop,” said a trader, Suresh.War and fluctuations in coffee prices in the market pose significant challenges to the coffee trade as well as the growers, he added. Most growers are selling their coffee, while some are holding out for better prices. However, neither the traders nor the planters were sure about the prices.
