Chart of the Day | Falling coffee prices brew trouble for growers

Coffee prices had come off their highs of April 2011, but were showing some signs of stability in the last quarter of 2011.

In 2012, they have slumped and the worst affected is the Arabica variety—the more prized variety of coffee and one which usually shows more resilience in a weak market.

Robusta, in contrast, which is used to make instant coffee, has been relatively steady.

Considering how sharply prices had risen since 2010, the fall may not appear catastrophic.

But growers will find their margins squeezed, while coffee retailers and instant coffee makers will welcome the boost to margins.

Also See | Chart of the day (PDF)

Graphic by Yogesh Kumar/Mint.

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