Most of the people across the globe turn to coffee to refresh their mind for a hectic day at work, or just as an accompaniment to a book on winter nights. Climate change triggering erratic weather conditions which can get extreme and lead to irregular rains, have led to crop damage and higher food inflation in Indi. The impact of such environmental changes has also taken the edge off the global coffee industry, causing a shortage of the beverage, and driving prices up by 0.3 per cent in December.
Brazilian and Colombian variants in demand
For almost half a kilogram, the price of coffee hovered between 151.95 cents and 162.31 cents, while prices of the Brazilian coffee variant clocked a 1.5 per cent spike to hit 169.00 cents. As for Colombia’s offering, the prices reached at 224.12 cents with a 0.4 per cent spike, and the production of coffee in 2021-22 dropped to 167.2 mln bags from 170.83 mln bags during the previous year.
Consumption to outpace production
On the other hand, coffee consumption will surge by 3.3 per cent in the current year creating a shortfall of 3.1 mln bags. Exports of the Arabica coffee variant went up by 8 per cent while 11 per cent more Robusta was shipped out to the world.