The price of coffee, chocolate and sugar has increased worldwide.
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According to a Bloomberg report, the price of soft commodities such as coffee, chocolates and orange juice has increased significantly this year due to tight supply. The situation is made worse by the return of El Nino and the possibility of warming in the countries that produce these things. For example, in the UK, shopkeepers are keeping instant coffee jars in security cases to protect them from theft. Similarly, a major beverage company in Japan has stopped selling Tropicana orange juice due to shortage. Chocolate and biscuit makers in Germany complain that the cost of sugar and cocoa is beyond their means.
rise in the price of coffee
This week coffee prices reached their highest level since 2008. This year, the price of soft commodities has gone up by 24 per cent. But the price of wheat and maize is seen falling. Experts say that the price of bread and pasta will decrease but the price of sugar, coffee and chocolate will increase. There is a possibility of a five percent decline in the production of coffee beans in Brazil. Production in Indonesia, the world’s second-biggest exporter of robusta coffee, could fall by up to 20 percent. At the same time, the reserves of Vietnam, the largest producer of Robusta, are continuously shrinking.
Similarly, for the companies making chocolates, the situation may get worse. Cocoa beans are the largest in the world in West Africa. But due to bad weather there is a possibility of reduction in its cultivation up to eight percent. This season’s cocoa price has already reached a seven-year high. Supplies are already tight in top exporter Ivory Coast due to crop failure. Cocoa is a plant from which chocolate is made. Dark chocolate is made by roasting cocoa beans.
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sale of orange juice
Similarly, the price of orange juice has also increased a lot. Most of its production in the US is in Florida. But there the crop has been badly affected due to disease and hurricane. Due to this, its futures price has reached a record level of 36 years. Because of this orange juice has gone out of the budget of common people. The beverage industry has started moving away from orange juice. Japan’s Kirin Beverages has stopped selling orange juice, citing tight supply.
Earlier, the Finance Ministry in India had warned that El Nino could create drought-like conditions in the country. This can lead to a decrease in the production of crops and an increase in the price. El Nino is a Spanish word. It means little boy. Monsoon is likely to be affected this year due to El Nino effect. The Meteorological Department has predicted a normal monsoon, but Skymet, a private weather forecasting body, has predicted a below-normal monsoon. Monsoon is very important for the agriculture sector of the country. The livelihood of 60 percent of the country’s population is dependent on agriculture and it contributes 18 percent to the GDP. About half of the cultivable land in the country is dependent on the monsoon.
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what is el nino
The phenomenon of warming of the coast near Peru in the Pacific Ocean is called El Niño. The change in ocean temperature and atmospheric conditions is known as El Nino. This makes the sea surface temperature 4-5 degrees higher than normal. Due to this heat, there is a change in the path and speed of the winds blowing in the sea. This affects the weather cycle badly. The effect of El Nino is felt all over the world. Due to this, there is a difference between rain, cold and heat. Now due to change in weather, there is drought in many places and there is flood in many places.
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