In India the cultivation of coffee is becoming a very expensive and loss making proposition. The high cost of inputs and shortage of labour coupled with the unpredictable climatic patterns have worsened the situation.
Coffee in India – a brief introduction
India stands between the top 10 countries in terms of production of coffee, it exports about 70% of the produce. Karnataka is the heartland of coffee where according to the historical tale Bababudan brought seven beans of coffee from Arabia and the cultivation of coffee in India began thereafter. The state of Karnataka contributes about 70% to the production of coffee followed by Kerala which contributes 23% to the total produce and then the Nilgiri hill region of Tamil Nadu which also produces coffee. These days coffee is also being cultivated in the north eastern states like Andhra Pradesh.
There are two varieties of coffee cultivated in India viz Arabica and Robusta the two have different aromatic properties which decides their market value. Indians cultivate more of Robusta according to the climatic conditions as the Arabica is more prone to leaf rust and other fungal diseases.
India is renowned for its well-shade grown coffee, which is believed to contribute to the flavour profile of the coffee, alongwith the spices and different fauna which thrive around it. Indian coffee is mostly grown in the rainforests in Western Ghats ,these bio diverse regions contribute to the amazing flavour and characteristics of the Indian Arabica variety of coffee which is sought in the international market.
The grim reality
The climatic conditions have been extremely unpredictable after 2018, according to the study done by KPA(Karnataka Planters’ Association) the dry spells, torrential rains this year and the floods that followed have led to destruction of the crop to be harvested in December anticipating an overall 30% decrease in production this year. The vagaries of nature have brought about a financial crisis for the coffee planters.
In India the production is low but the cost of inputs is much higher compared to other coffee producing nations like Brazil where labour accounts for only 25% of production cost while in India labour accounts for 65% of cost of production. Mechanisation can bring it down but the terrains and topography of shade grown coffee limit this possibility whereas in other countries coffee is grown on flat lands.
There is a dire need for weather resistant coffee varieties but insufficient funds have prevented this research. Moreover, cost of production per acre including the cost of fertilizers and agrochemicals have risen to 80,000 to 85,000 per acre making it a costly affair. The farmer loans have become NPA(Non performing assets) by the banks as they are unable to pay back the same due to low production. The ravages of nature have further aggravated the plight of farmers.
The coffee grown in India is mostly exported about; 75% of produce so internal demand does not affect the market much but the cost competitiveness in the global market and the quality of produce deeply affects the final price gained by the farmers. The coffee board was established in India in 1942 under the Ministry of commerce and Industry. It’s main role is to promote research and sales in national and international market and devise marketing strategies and provide financial assistance to farmers.
Way Forward
The identity of the Indian coffee needs to be highlighted properly and farmers must be taught alternative sources of generating revenue like intercropping of pepper and exotic fruits like avocados and mangosteen etc, and growth in internal demand will also help the farmers.Moreover, there is a need of innovative marketing in the global market to boost sales worldwide with the quality of Indian coffee and its unique propositions.
The coffee community in India, comprising close to 4 lakh coffee growers, hundreds of large planters and associations that represent growers, planters and exporters, and over a dozen Fair Trade Organisations, hopes to boost the domestic and international markets and counter the problems the industry faces.
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