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Bengaluru residents are set to experience another price hike, this time affecting their beloved filter coffee. The cost of this staple beverage is expected to increase by 10-15% from next month, as a result of rising coffee bean prices in the global market. In response, hoteliers across the city have decided to adjust their prices accordingly.
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The price of a kilogram of Arabica coffee powder—one of the preferred brands among restaurants—saw a sharp surge from ₹588 on January 15 to ₹725 by February 6, as per a report by The Hindu. According to P.C. Rao, President of the Bengaluru Hoteliers Association (BBHA), the price of coffee powder rose by ₹110 per kg in February, and another ₹100 per kg increase is expected in March. Such steep hikes are unprecedented, as past increases were usually limited to ₹20- ₹30 per kg. Given these rising costs, restaurant owners find it inevitable to raise their coffee prices.
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Currently, the price of a cup of filter coffee ranges from ₹12 to ₹15, depending on the quantity. However, after the hike, prices are expected to be revised to ₹15 and 20, respectively. Some eateries have already implemented the new pricing, while others are likely to follow suit starting March 1. Additionally, with milk prices projected to increase by 5%, many restaurant owners are waiting for this adjustment before finalizing their new coffee rates. Unlike earlier times, concerns about providing exact change have diminished, as digital transactions now account for 80% of payments, Mr. Rao noted.
Coffee crop loses in global markets
The sharp rise in coffee prices on February 11 has been attributed to substantial crop losses in Brazil and Vietnam, the world’s largest coffee producers, due to unfavorable weather conditions. Experts anticipate that the industry may take five to eight years to recover, as new coffee plants need time to mature and yield produce.
India produces approximately 365,000 tonnes of coffee annually, with nearly 70% of the output exported to European markets. Karnataka remains the largest coffee-producing state in the country, contributing 70% of the national yield. Within the state, Kodagu alone accounts for 32% of the total production.
