Coffee is an international commodity and its prices are affected by changing global production and trading dynamics. The wholesale prices of all coffee seeds have been averaging higher year after year. During 9MCY13, the average wholesale prices of coffee seeds declined by 12.6% on a y-o-y basis, with the greatest fall witnessed in prices of Arabica Plantation seeds by about 26.9% on a YoY basis in Chennai market.
The share of raw material expenses for coffee industry has gone up from 50% of total operating expenditure in FY07 to 54% in FY13. The proportion of employee cost as a percentage of total expenditure remained at 12% of total expenses. However, in value terms, employee cost grew at a CAGR of 13% during the period FY07-13.
Demand for tea in India has remained consistent as tea is being consumed in over 90% of the households as an integral part of the daily routine......
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