Rising Coffee and Milk Prices Push Up Filter Coffee Rates in Bengaluru by 20%

Bengaluru’s popular Darshini hotels and other eateries have increased their coffee prices by at least 20%. Image used for representational purposes only. Photo: The Kodagu Express

Bengaluru: For South Indians, filter coffee is more than just a beverage—it is an emotion, an integral part of their daily routine. However, this beloved drink has now become costlier, as soaring coffee and milk prices have driven up the cost of a cup of filter coffee in Bengaluru’s popular eateries.

The Congress-led Karnataka government has dealt a financial blow to consumers by approving a Rs 4 per litre hike in milk prices, effective from April 1. The decision, announced on Thursday, March 27, after a cabinet meeting chaired by Chief Minister Siddaramaiah, has further compounded the already rising cost of coffee.

As a result, Bengaluru’s popular Darshini hotels and other eateries have increased their coffee prices by at least 20%. For instance, a well-known restaurant in Jayanagar has raised the price of a cup of filter coffee from Rs 15 to Rs 18. The trend is expected to continue across the city as businesses adjust to higher input costs.

Coffee, milk price hike hits Bengaluru hotels:

Speaking to The Kodagu Express, Karnataka State Hotel Association (KSHA) President G. K. Shetty highlighted the steep rise in coffee powder prices as another key factor in the price hike. “The cost of coffee powder has surged significantly. With the milk price increasing by Rs 4 per litre, hotel owners have no choice but to revise the prices of hot beverages like coffee and tea. This is a tough situation for the hotel industry, which is already facing multiple challenges,” he said.

ALSO READ: Karnataka Government Gives Shock to Customers with Rs 4 per litre milk price Hike from April 1

Shetty further explained that maintaining quality and hygiene while preparing coffee and tea comes at a cost. “We follow strict food safety and hygiene standards while serving our customers. However, if prices continue to rise, people may turn to cheaper alternatives that do not adhere to food safety regulations, potentially impacting public health,” he warned.

P.C. Rao, President of the Bangalore Hotels Association, echoed these concerns. “The price of milk has increased, and coffee powder prices have also gone up. This has pushed up overall costs. If there are further changes in the prices of these commodities, we will consider revising our menu,” he said.

Global coffee shortage boosts Karnataka growers:

The increase in coffee prices has been linked to global supply chain issues, particularly crop losses in Brazil and Vietnam, the world’s top coffee-producing nations, due to adverse weather conditions. Experts predict that it may take five to eight years for the industry to recover, as coffee plants require time to mature and yield sufficient produce. The price of coffee powder in India has already risen by Rs 200 per kilogram since January, with further hikes anticipated in the coming months.

India produces approximately 365,000 tonnes of coffee annually, with around 70% of it being exported to Europe. Karnataka remains the country’s leading coffee-producing state, contributing 70% of India’s total output. Within Karnataka, Kodagu alone accounts for 32% of the total coffee yield, making it a crucial hub for the industry.

While the price hike is burdensome for consumers, it brings some relief to coffee growers in Karnataka, particularly in Kodagu, Chikkamagaluru, and Hassan. With rising global coffee prices, these growers are likely to benefit from better earnings, providing a much-needed boost to the region’s coffee industry.

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