Chocolate makers worried as cocoa prices rise to £3,500 a tonne

- Bhoo Bazar : Dilip Shah

- The size of the chocolate market in India has increased to Rs.15 to 16 thousand crores, which is likely to increase to Rs.23 to 24 thousand crores in 4 years.

The Diwali festivities are over in the country and now the players of various markets are eyeing the Christmas festivities and the wedding season. This year, dry fruits and chocolates were more popular than various sweets during the Diwali festivities. However, the price of cocoa, which is the main raw material used in making chocolate, has reached a new high in the world market recently. As a result, the production cost of chocolates has gone up, sources in chocolate manufacturers said. There is also a possibility that the demand for chocolate will be affected if the price of chocolate goes up. This has had an impact on the demand for chocolate, especially in Asian countries. Global market chocolate makers have started production planning for the Christmas season and chocolate makers are keeping a global eye on cocoa price movements. Before this, the growth in the demand for chocolate in Asian countries was in double digits, but now with the increase in the price of cocoa, there were signs that the pace of growth in such demand is slowing down. A chocolate industry conference recently met in Bali, Indonesia. At the conference, various global chocolate manufacturers expressed concern about high cocoa prices. Globally, the pace of cocoa grinding also slowed down. According to the experts of the world market, there has been a deficit like supply in cocoa against the demand of 3 years at the global level. According to these informants, apart from India, China, Indonesia, Thailand, Philippines Vs. In recent years, the demand for chocolates has grown significantly in Asian countries, but now demand growth has slowed down. However, the market experts were showing the possibility of such demand increasing again if the price of cocoa comes from high to low.

Cocoa is especially produced in West Africa. Cocoa prices in the world market have increased by about 45 to 50 percent in twelve months. In Ivory Coast and Ghana, adverse weather conditions and pests have affected cocoa production. About two-thirds, two-thirds of the total global production of cocoa is produced in Ivory Coast and Ghana. El Niño has an effect on the weather. And bad weather has affected cocoa yields. As cocoa prices rise, chocolate manufacturers have been seen increasing prices of buttermilk. This has affected the demand in Europe as well as Asia. Cocoa prices rose to a 12-year high in the month of September in cocoa futures traded in New York. The last major boom in cocoa prices in the world market was seen in 1979-1980. Markets have been eyeing the new cocoa season starting in Ivory Coast and Ghana, with Ivory Coast producing as much cocoa as possible. Out of this, approximately 77 to 78 percent of the goods are picked up by European chocolate manufacturers. In Ivory Coast, new arrivals of cocoa occur between October and March and the crop is under-estimated there, the government recently increased the official price of cocoa to farmers from $1.60 to $1.65 per kg. In West Africa, amid the possibility of a decrease in cocoa production in the season of 2023-24, the global deficit (food) of cocoa will increase to about 2 lakh 75 to 80 thousand tons, the experts were showing. Cocoa prices in the London market recently rose to a new high. There was news of a supply shortage. This year, the price has seen an increase of about 70 to 75 percent. The London Cocoa March futures price rose to a high of 3500 British Pounds per tonne.