Coffee prices have taken a sharp tumble. In January the International Coffee Organisation’s composite price indicator fell below a level last seen in June 2010. The decline has been particularly sharp in the Arabica variety as prices declined by 36% in January from a year ago. The Robusta variety too has slumped but the decline is not as precipitous as in Arabica, and January 2013 prices are actually up by 3% from a year ago. Though a declining trend in coffee prices is bad news for Indian coffee plantation companies, they can take comfort from the relative outperformance of Robusta, as the grade makes for a bulk of domestic production. A strong dollar too has been a support, but if the rupee continues to strengthen, that could erode.