Domestic cocoa prices may see a decline this year

KOCHI | AHMEDABAD: Domestic cocoa prices may see a decline this year as the new crop promises to be good. The dry bean prices, which have been hovering around Rs 160 per kg, are set to drop by 10% in the short term, say chocolate companies. However, the global cocoa market continues to be volatile with civil war continuing in the principal producing region of Ivory Coast.

"The new crop for which harvest has begun is good. As a result, the prices may go into a correction mode. It could drop to Rs 145 per kg level," said Mahesh Morde, director of Morde, a leading chocolate compound manufacturer in India.
Heavy unseasonal rains had adversely affected the cocoa crop last year.

Delay in flowering resulted in poor quality beans. The chocolate companies found it difficult source good beans from the market. The shortage pushed up the dry bean prices to Rs 180 to Rs 190 per kg level.