Coffee Retail Price Hike Deferred

The All-India Coffee Merchants Association (Aicma) has deferred increasing retail prices of coffee in view of the ongoing countrywide strike by truck operators, according to the association president, R P Sarathy. The merchants had planned to increase coffee prices from April 14 by Rs 10 a kg but had now decided to consider the hike only after the strike by the truckers was called off, Sarathy told PTI over phone from Salem in Tamil Nadu.

We are generally supposed to supply at least one consignment to the retail outlets before we effect any price increase. But due to the truckers strike, there has been virtually no supply during the last 10 days, he said. We also do not want to give the wrong impression that the prices of coffee are being increased due to the strike by the truck operators, he said.

The Aicma had proposed to increase the price for the best grade arabica variety coffee powder from Rs 170 a kg to Rs 180 a kg in view of unstable prices in the global coffee market. Expressing concern over the prolonging truck operators strike, in protest against the five per cent service tax and steep increase in insurance premia, he said movement of coffee had been badly hit by the stir, with no movement practically.

Sarathy said there was also no security for those willing to move their goods.

Coffee prices have been increased twice during the last one-and-half months in view of spurting international prices and estimated lower crop production in India. Coffee prices were increased by Rs 10 a kg on February 24 and then again by Rs 10 a kg on Mar 10.