The coffee production in India will collapse to a 21-year low next season after the heavy rainfall, floods and landslides have damaged trees in major areas of cultivation in the third largest producer in Asia. The production in the year beginning on October 1 may be about 25% lower than 316,000 metric tons, calculated by the State Coffee Board for 2017-2018. That would be the lowest level since 1997-1998, state data show.
The collapse in production may have a positive impact on global coffee prices, as India exports over 70% of its production. Arabica coffee can get support after this week's price collapsed to a 12-year low. The Robusta variety has depreciated by 11% this year.
But for the farmers in Kerala - the largest coffee-producing region after neighboring Karnataka, the blows are just beginning.
"We are in poor condition and we do not know what the future will bring", commented from the local coffee production association. "Not only the crop, but also the plants are damaged and their recovery will take another 3-4 years. Many areas are affected by landslides", added they.
The floods in Kerala this month killed at least 394 people and caused damages for more than 3 billion USD. The rainfalls in the area since June 1 were 40% more than normal, according to the Indian meteorological office. The rains between August 1 and 19 were 164% higher than the average for the period.
Posted from my blog with SteemPress : http://financeandmarkets.com/floods-in-india-shrink-the-countrys-coffee-production-to-a-21-year-low/
Warning! This user is on my black list, likely as a known plagiarist, spammer or ID thief. Please be cautious with this post!
If you believe this is an error, please chat with us in the #cheetah-appeals channel in our discord.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
This user is on the @buildawhale blacklist for one or more of the following reasons:
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit