India coffee prices at 13 year high on global cues

CHENNAI (Commodity Online): Coffee prices in retail markets of India are soaring on global cues. Retail coffee prices in local retail shops were around Rs 300 per kg and still tend to grow up.
The tight demand-supply position in international markets due to adverse weather conditions in Brazil, India and Indonesia are fuelling the prices.
Climate changes and adverse weather have decreased the production in Central America and Columbia where Arabica is largely grown. These countries contribute 65% of world’s washed Arabica production.
Traders in Tamil Nadu say the consumers are buying less coffee these days, as the prices are soaring. Tamil Nadu is the largest coffee consumer state in India.
While roasters have increased powder prices only last month, the post-monsoon drop in production estimate hints at another round of upward revision in January. According to Karnataka Planters’ Association data, markets may see a 10% decrease in Arabica production from the estimated 99,500 tonne due to bad weather, ET reported.
In India coffee prices are primarily depended on the global prices, as the country imports three- fourth of its consumption.

(Source: http://www.commodityonline.com/news/India-coffee-prices-at-13-year-high-on-global-cues-35352-3-1.html)