New Delhi, May 4 -- In the two years since March 2023, an International Monetary Fund price index for beverages, comprising cocoa, coffee and tea, has risen 122%. By comparison, the IMF's food price index has declined 12%. Cocoa and coffee have been the drivers of inflation in the beverages space, with key producer countries facing supply shortages, and there could be more price challenges.

Brazil and Vietnam account for over half of the global coffee production. Brazil has had irregular climate events-first a devastating frost and then a drought last year due to El Niño. The International Coffee Organisation has raised concerns about Brazil's coffee season in 2025-26 as well due to frost. Vietnam also faced a drought due to El Ni&#...