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    A bitter brew for coffee on rain fury

    Synopsis

    The loss may put pressure on coffee growers for repayment of loans.

    Coffee-1200
    Kochi: Torrential rains last week dealt yet another blow to the coffee industry, which was recovering from long spells of drought and heavy rainfall in the past three years.

    Incessant rains pounded the prime coffee growing regions of Kodagu and Chikkamagaluru in Karnataka and Wayanad in Kerala, causing extensive damage to plantations. Since 70% of coffee produced is exported, the heavy rainfall is likely to hit exporters, who have already lost the competitive advantage as the produce from other regions has become cheaper.

    “We may be able to assess the damage only after the rains ease,’’ said Anil Bhandari, a coffee grower and president of Indian Coffee Trust. He expects the damage to be severe, unlike in the previous year when only certain regions like Kodagu were hit. “We haven’t seen such rains in the last 20 years or so. We have been getting six-seven inches of rain for the last few days,’’ said Boje Gowda, chairman of Coffee Board.

    Uncertainty ahead

    Last year, rains came pounding when growers were expecting a good crop after two backto-back drought years. That was followed by an extended period of hot weather till May which affected the coffee berry setting, resulting in a shortfall in crop – particularly robusta, which accounts for a major share of the coffee production in the country.

    In 2018-19, as against 3,19,500 tonnes estimated by the Coffee Board, coffee growers have calculated the output to be short by over 20,000 tonnes. Prospects for the next crop also appear uncertain. In Wayanad, which witnessed landslides along with heavy rains, coffee berries have started to drop. “Though landslides were limited to some pockets, rains were heavy throughout the coffee belt, We expect 30% fall in output for next crop,’’ said Prashant Rajesh, secretary of Wayanad Coffee Growers Association.

    The loss may put pressure on coffee growers for repayment of loans.



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    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

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