Global Coffee Prices Surge Due to Bad Weather, Impacting Pakistan’s Winter Demand

Islamabad:While coffee is a popular beverage throughout the year, its demand increases significantly with the onset of winter in Pakistan. However, this year, just before the winter season, a significant rise in coffee prices has been observed.

Many have speculated that the hike in coffee prices is related to the rising inflation, both locally and globally. However, the real reason behind this unprecedented increase in coffee prices is something else entirely.

According to international media reports, coffee prices have seen their biggest surge in 50 years, largely due to severe weather conditions in Brazil and Vietnam, two of the largest coffee-producing countries in the world.

Brazil is the world’s largest coffee producer, followed by Vietnam. This year, both countries have experienced severe droughts, resulting in a significant reduction in coffee production. As a consequence, the price of Arabica coffee beans reached a record high of $3.36 per pound in global markets, a price last seen in 1977.

Robusta coffee, primarily produced in Vietnam and typically used for instant coffee, is generally cheaper. However, even its price has soared. In mid-September, the price of Robusta coffee futures reached $5,829 per ton in London.

Experts have pointed out that while the price increase benefits coffee farmers, it poses challenges for traders. They warn that due to the adverse weather conditions, coffee prices are expected to remain elevated throughout the next year.

This dramatic rise in coffee prices is now impacting consumers in Pakistan, where coffee is not only a winter favorite but also a growing trend among young people. The price surge is expected to further strain household budgets, especially with the upcoming winter season.