Cup of woes

Do you drink coffee as well as invest in it? If yes, you face a double whammy. The price of coffee beans (commodity) is at a 13-year low—which is bad news for investors. Yet, the price of the coffee you drink has not fallen, but has, in fact, risen as the following data shows:

Then: The retail price of a 50 gram pack of instant coffee was Rs 24 in 1992.

Now: It is now priced at Rs 65, a rise of 170% in 16 years.

Then: If the price of coffee keeps rising at the same rate, a 50 gram pack may cost about Rs 176 in 2024.

The consumers of coffee far outnumber the investors in this commodity. For them, the price depends to a large extent on where they have it—at home or a trendy cafe. The latter would leave their wallets much lighter than a home-brewed cuppa.