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Home » News » Surge in global coffee prices impacts premiums on Indian speciality varieties

Surge in global coffee prices impacts premiums on Indian speciality varieties

Jessica BrownBy Jessica Brown Business
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Specialized coffees producers normally negotiate and sell their coffees at a fixed price above normal prices.

Specialized coffees producers normally negotiate and sell their coffees at a fixed price above normal prices. | Photo credit: Mohammad Khursheed

The strong increase in international coffee prices in the last quarters has affected the premiums of specialized coffees.

Specialized coffees are high quality coffees that differ from normal coffees, both in terms of appearance and cup quality. Traditionally, Indian specialized coffees have commanded a premium up to 25 percent in normal coffee, according to producers.

“The premiums have decreased dramatically for special coffee this year, the price of normal coffee in a record, compared to recent years,” said DM Purnessh, president of the Indian specialty coffee association. “We can ask for a premium of about 10 percent this year, unlike 25 percent before,” said Purnessh

The producers of specialized coffees normally negotiate and sell their coffees at a fixed price above normal prices.

Cafes cultivated in high elevations, individual origins (heritage), specific varieties and cultural practices and those processed with special processing techniques are classified as specialized coffees. According to the Coffee Board, the Special Café is distinguished by its clear origin, distinction made by careful cultivation practices, careful displays, special processing and, or course, brand and special appearance, which is into account.

While exact figures on the number of specialized coffees produced in the country are not notable, it is estimated that about 5 percent of the coffee produced could be classified as specialized coffees, Purness said. “Very few coffee growers have ventured to produce special coffee,” he added.

Specialized coffees are exported to the European Union, the United States and countries like Japan, among others.

India, the largest seventh producer, produces around 3.6 Lakh tons of coffees. General coffee exports crossed a record of $ 1.8 billion for the financial year that ended in March 2025, in an increase in world prices. World coffee prices are at record levels due to problems for the supply of key producing countries such as Brazil and Vietnam

Posted on April 14, 2025

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