Coffee Prices in Bengaluru Set to Increase Due to Costlier Beans

Bengaluru residents will soon have to pay more for their daily filter coffee, as the Bruhat Bangalore Hotels Association (BBHA) has announced a price hike of 10-15 per cent starting next month. The decision comes amid rising global coffee bean costs, which have surged by Rs 200 per kg since January, with further increases anticipated in March.

BBHA President P.C. Rao stated that the steady rise in coffee bean and powder prices has made it necessary for hotels and eateries to revise their rates. He also hinted that potential milk price increases could further impact coffee prices in the near future.

“We have asked all member establishments to raise their coffee prices based on their existing pricing structures. Bengaluru is well-known for its affordable filter coffee, with prices typically ranging from Rs 12 to Rs 40, depending on the establishment,” Rao said.

The city’s widespread coffee culture means the decision will affect a significant customer base. Rao assured consumers that the increase is minimal and unavoidable. “We understand the impact on customers, so the adjustment is limited to 10-15 per cent. A coffee priced at Rs 12 may rise to Rs 14, while one costing Rs 15 might increase to Rs 18, depending on individual business decisions,” he explained.

While some hotels have already implemented a 10 per cent price hike, others planning a 15 per cent increase are expected to do so by March. Some establishments are waiting for potential milk price adjustments before finalizing their rates.

The Indian Coffee Roasters Association highlighted that India, the world’s seventh-largest coffee producer, grows around 3.6 lakh tonnes annually, comprising 70 per cent Robusta and 30 per cent Arabica. Domestic consumption stands at about 1.2 lakh tonnes, including both filter and instant coffee.

“Climate fluctuations are disrupting coffee production globally, affecting both yield and pricing. A year ago, Robusta was significantly cheaper than Arabica, but today, their prices are nearly identical,” the association noted.

India has also seen a surge in coffee exports, contributing Rs 10,000 crore in foreign exchange earnings. Perikal M Sundar, the association’s president, attributed the price surge to poor harvests in Brazil and Vietnam, the world’s top coffee producers, due to adverse weather conditions.

“Robusta prices have increased from Rs 200 per kg in January to Rs 520 per kg by mid-February, while certain Arabica grades have jumped from Rs 290 per kg to Rs 750 per kg. Limited availability and strong demand in export markets have reduced domestic supply, pushing prices higher,” Sundar explained.

With coffee roasters facing increasing costs, the industry has already raised prices by Rs 100 per kg this month. A further Rs 100 increase is expected in March.