Category Archives: Agriculture

Bangalore Based Startup – Aromas of Coorg, Brewing Business with Coffee

When Friedrich Durrenmatt once said “It is surely easier to confess a murder over a cup of coffee than in front of a jury.” he quite simply put across the magic of a good cup of brewing coffee!

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Fresh, strong, steaming hot and hassle-free service are some of the words which come to your mind when you think of coffee and vending serivces, and these very words are the part of Aromas of Coorg’s philosophy.

In conversation with Abhilasha Dafria for YourStory, A.Chithra Uthappa, co-founder of Aromas of Coorg, tells us how they, at AOC, are full of fresh ideas, believe strongly in quality and customer satisfaction and have the best designed products for their customers so that they get the maximum value for their money.

Afterall, science may never come up with a better office communication system than the coffee break!

Hi Chitra, tell us about yourself and an introduction to Aromas of Coorg

Aromas of Coorg has been in business of Beverage solutions since 2009 & coffee cultivation for more than 3 decades. Our passion is to provide the most technology driven, innovative beverage solutions to both businesses and consumers.

I, A.Chithra Uthappa, am the founder & Managing Director of Aromas of Coorg and I’m an MBA from MIT MAHE University, Manipal and B.B.M From Mysore University. I have worked with large corporates like Kotak Mahindra Bank, Aditya Birla Minacs and iSeva/e4e. All my corporate roles have been with fast growing sunrise industries and have played significant roles in building the businesses and growing the companies to the next level. In my last assignment with the start-up open2save, I was a key team member and was instrumental in setting up new business channels ground-up.

Radhakrishnan M, my co-founder & Head of Operations is a seasoned professional with over a decade’s experience in large corporate before he set-up his own company, Aromas of Coorg. He has worked with large corporate like Dell, Infosys, Manpower Inc. etc and has extensive experience in building and managing businesses including sales, building teams and organizations. He is an MBA from Loyola College, Chennai and B.Sc. from Madras University.

So what triggered this idea?

There are four important factors that made our idea into a company, ie, My husband’s passion and support for my entrepreneurship, my son, our roots from Coorg and the corporate exposure.

First and foremost, to become an entrepreneur was always the dream of my husband and me … this is what we wanted to be. I was on sabbatical for my child and during the break; I conceived the business idea too! We decided that this would be the right opportunity to start something on our own sitting at home. This is where it all started.
We are basically from Coorg and we have been into coffee cultivation for more than three decades. This was the primary driver why we chose to build something unique in this space and we thought out of the box. Having worked with corporate for more than a decade we understand this world well and we were able to quickly identify the opportunity.

Thus the birth of “Aromas of Coorg”, as we wanted our company to bear the name “Coorg” in some part and also wanted a name where our targeted customers can easily relate to it. Quite naturally the first thing that attracts anybody to any form of food is the “Aroma”. That is how we finalized on the name “Aromas of Coorg” and this also marked our entry into the beverage solutions for corporate, institutions, etc.

Since when are you operational? How big is your team? Are you looking at hiring?

We are fully operational since August 2009. We are currently a 40 member team. Yes, definitely, we are looking to strengthen our sales force and simultaneously our operational support staff will have to go hand in hand with every new client that gets added.

What is your clientele like?

We service range of clients like large corporate across multiple cities to a one location company as well. We have a well spread out client base across industries and geographies.

Where are you based and where are your clients from?

We are based in Bangalore and are currently supporting clients in Bangalore, Mysore, Tumkur, Nelamangala, Hosur and Chennai. However, we are not present in retail segment at this point of time.

Where do you have your manufacturing units? Which cities do you provide the home-delivery services?

Our manufacturing unit is also in Bangalore; currently we provide home delivery service only within Bangalore city limits.

How does the supply chain work?

We are currently able to manage the supply chain internally, our raw materials are procured from different locations and the respective vendors manage the supply chain of the respective products. All these products come to our processing units in Bangalore from where the supply of finished products to the respective clients is managed by full time employees of AOC. Machines are manufactured under our complete supervision.

Did you fund-raise to start up? If not, are you looking at getting funded now?

We used our personal money and angel money. We are looking to get funding for our future expansions.

How does the revenue module work?

We work both on variable and a fixed pricing model where clients can pay based on usage or based on usage+ a fixed monthly costs. The pricing model is designed with the motive of win-win for us and clients.

So what were the challenges you faced while starting up? Tell me about your initial hurdles.

First and foremost challenge was how to differentiate ourselves from the others; there were several big brands and more than enough small vendors. We really had to come up with a differentiator from the existing. This is the stage were we re-invented our traditional filter coffee. The wave of western form of coffee was so popular that everybody is racing towards the Cappuccino, Espresso, latte, etc.

Timing was tough; given it was the time of deep recession, all around you there were companies going under losses, almost all the corporate were planning for major cost cutting, and so on. It was also very difficult for us to penetrate the companies with our new concept and service offerings.

Of course our innovative thinking helped us make good inroads. We took this to our advantage and came up with our very own filter coffee which is truly Indian, especially south Indian, and presented to the corporate the first of its kind fully-automated Vending machines which serves authentic filter Coffee and freshly brewed Tea. In our very first Demo we knew that we hit the nail on the head with our concept.

Are there other players in the market doing similar things? What are your key differentiators?

Yes there are several big names in the market providing beverage service, Coffee day, Fresh & Honest, Tata Cafe, Hindustan lever, etc. Our USP is our focus on technology, our zeal to innovate and our relentless passion for quality. Our Vending machine is the first its kind which is fully automated to serve freshly brewed authentic filter Coffee & freshly brewed Tea on a single press of the button. We are the first company in India to build coffee vending machine with both HOT & COLD option in the same machine. We are looking at adding more features around quality assurance here.

Our Coffee is a blend of six varieties of finest coffees beans hand picked from our own cultivation and we apply expert science, combined with traditional artistry, in order to maximize the flavor attributes of each roast. Our coffee roasting process is tuned to develop coffee flavors to the fullest for flavor profile, aroma and overall character in the cup. These factors make us the pioneers and front runners in providing the most hygienic and finest Coffee but at the same time affordable vending service provider in the market today.

Can you share with us some interesting trends about the market that you are trying to capture?

The market is looking for continuous innovation and personalization as much as possible.

An interesting trend is enhanced customer awareness and focus on health drinks like badam milk, green tea, milk shakes, horlicks etc. In some clients these new drinks are consumed lot more than traditional tea and coffee.

What are the challenges of scale in this business and how do you prepare to cope with them?

The biggest challenge in scaling is to maintain the same levels of service and quality. This is B2B2C market and end consumers decide what they finally like to drink. Having a continuous feedback loop and connection with end consumers is another critical aspect of this business.

Where and how do you see yourself going ‘bout this?

We aim to build our company to PAN India multi format Beverage Company. To serve 1 lacs cups a day is our immediate 12 months target.

For more information, please visit their website: http://aromasofcoorg.com/

– Abhilasha Dafria

source: http://www.yourstory.com / Your Story.com / Home> Entrepreneur / Team YS / by Abhilasha Dafria / December 30th, 2011

City gets ‘plant a tree’ message on Earth Day

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Tree plantation and workshops on saving the planet marked the World Earth Day in Bengaluru on Friday.

In Haralur, Hennur and other places, citizens planted saplings of different trees while a composting activity was held at the Bangalore Scottish School in JP Nagar where students were given demonstration on converting wet waste into compost.

Environmentalist Vijay Nishant visited MEG Centre in Ulsoor to check the status of trees that were in bad shape and treat them, going with the theme of World Earth Day, ‘Plant a tree, save a sin from Thee’.

He said: “Two trees here are suffering from fungal infection. Since it’s summer, termites start attacking the bark of trees and weakening them.”

On Saturday, the nonprofit ‘Save Kodagu’, with the support of Kodava Samaj, Lions Club Kodigehalli, Coral Waters and Rescue Roadside Vehicle Assistance, will hold a bike rally from Bengaluru to Madikeri to spread the message of conserving the environment and saving Kodagu from deforestation.

The nonprofit expects more than 200 people to take part in the rally, after which a memorandum will be submitted to the Kodagu deputy commissioner to save the forest from developmental projects.

Concern expressed

The NGO expressed concern over chopping of one lakh trees to make way for high-tension wire in Kodagu. In other programmes, the Green Path Organic Store held a ‘Bhoomi Habba’ and the Geological Society of India and the Ministry of Earth Sciences held a panel discussion on ‘Trees for the earth’, in which environmentalist Yellappa Reddy and other dignitaries took part.

source: http://www.deccanherald.com / Deccan Herald / Home> City / Bengaluru – DHNSD, April 23rd, 2016

Coffee Growers Feel the Heat

Somwarpet :

The rising temperatures and a lack of rain have caused a desperate situation for coffee growers.

According to an estimate, nearly 30 per cent of the coffee plantations received blossom showers during March and April, while the remaining 70 per cent are yet to receive the first rainfall.

This situation might have a bearing on the prices of coffee and pepper in the coming season.

Last year, the total production of coffee in the country was 3.5 lakh tonnes while the district produced around 1.6 lakh tonnes of coffee, on an area of 1.10 lakh hectares. According to sources, this year, coffee production will be reduced by at least 20 per cent, due to insufficient and delayed rain, as well as rising temperatures.

Madikeri Coffee Board deputy director Ananth Kumar said delayed rain adversely affected young coffee plants and crop this year.

He said the Coffee Board will conduct pre-monsoon surveys in the month of May every year, to ascertain the production.

He said growers should maintain shade in estates, as temperatures had risen to 32 degrees in some parts of the district, causing dryness of soil.

In some dry areas where annual rainfall is below 50 inches, young plants wilted and died, even under the shade of trees.

In Banavara, Abburkatte, Yedavare and Yedavanadu, coffee growers are worried about crops wilting and dying. Coffee grower M L Ravi from Aigoor said growers are in distress owing to falling prices of coffee, and that delayed rains have added to their woes.

He said last year 50 kg Arabica coffee sold at Rs 10,000-Rs 10,200, but now, the price had fallen to Rs 8,200.

source: http://www.newindianexpress.com / The New Indian Express / Home> States> Karnataka / by Coovercolly Indresh / April 22nd, 2016

ICAR to set up planters’ home at Madikeri

Expert lays stress on diversification of crops

While agreeing with popular belief that agriculture “is risky business”, Director-General of the Indian Council of Agricultural Research (ICAR) S. Ayyappan said on Thursday that, however, farmers in places such as Kodagu had shown how farming could be profitable.

He was inaugurating the golden jubilee of the Cardamom Research Centre (CRC) at Kodagu, an Indian Institute of Spices Research (IISR) release here said.

The cardamom centre at Kodagu comes under the purview of the IISR. Dr. Ayyappan said the ICAR would also set up a planters’ home at Madikeri to offer training to farmers in the region.

Diversification

“Agriculture being probably one of the riskiest businesses, for it to be profitable, we have to give importance to diversification of crops and specialty agriculture,” Dr. Ayyappan, who is also the Secretary in the Department of Agricultural Research & Education (DARE), said.

He was all praise for planters for their success in spices cultivation. He said that spice plantations at Kodagu were model farms for farmers from the other States. “They have proved that farming is a profitable venture. The productivity of black pepper in these plantations is far above that of Vietnam,” he said.

He said the decision to upgrade the CRC and set up the planters’ home were New Year gifts for farmers at Kodagu.

N.K. Krishnakumar, Deputy Director-General of Horticulture, who presided, wanted the IISR and the CRC to identify pockets where cultivation of cardamom and black pepper and other profitable spices could be grown on a large scale.

M. Anandaraj, IISR Director, Amrik Singh Sidhu, Director of the Indian Institute of Horticultural Research, Bangalore; George V. Thomas, Director of the Central Plantation Crops Research Institute, Kasaragod, spoke.

Publications such as Capsule, a souvenir of the golden jubilee celebrations, Sadaram, a comprehensive publication on 50 years in cardamom research, and special issues of Spice India and Indian Journal of Arecanut, Spices and Medicinal Plants published to commemorate the golden jubilee were also released at the function.

Progressive farmers from Kodagu such as S.B. Jayaraj of Murugarajendra Estate, Madapur; B.M. Mahesh Kumar of Hosathota Estate, Sakleshpur; John Thomas Ramapuram of Doona Ann Plantations, Siddapura; C.P. Pramod of Cauvery Estate, Madikeri; Duleep Nanjappa of Pakka Estate, Madikeri, and Prema Ganesh of Prema Estate, Madikeri, were honoured by Karnataka Speaker K.G. Boppiah at the programme.
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Planters’ home to offer training to farmers

Planters lauded for success in spice cultivation

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source: http://www.thehindu.com / The Hindu / Home> Kerala / by Special Correspondent / Kozhikode – December 22nd, 2012

Planters feel relieved as Karnataka scraps agriculture income tax

Bengaluru :

In a relief to the beleaguered coffee, tea and rubber growers in Karnataka, the State government has proposed to abolish the agriculture income tax with effect from April 1, 2016.

“There is a long standing demand of growers of coffee, tea, rubber and other plantation crops to abolish Agricultural Income Tax. I propose to abolish Agricultural Income Tax with effect from 1st of April 2016,” Karnataka Chief Minister Siddaramaiah said presenting the State Budget for 2016-17 here on Friday.

With this, Karnataka, the largest coffee producer, has followed the neighbouring Tamil Nadu, which had abolished agriculture income tax way back in 2004. Even Kerala has provided a relief to the planters community by exempting the income tax for a year in 2016-17.

Karnataka’s latest move will provide relief to about two dozen companies such as Tata Coffee and Bombay Burmah Trading Corporation that operate coffee, tea and rubber plantations in the State besides thousands of individual coffee growers. Plantation companies had to pay a 35 per cent tax on their net income in the State and the total outgo in the State is estimated at around ₹20 crore.

“It is a good news for the plantation industry and will give us a boost,” said Baba PS Bedi, Chairman of the Karnataka Planters’ Association (KPA). Bedi further said the proposed move would provide some relief for the plantation sector that is becoming unviable, reeling under the impact of declining realisations and rising input costs.

Though Karnataka had suspended the agriculture income tax for individual growers way back in 2004 when the coffee prices had touched a 100-year-low of around 0.40 cents per pound, the growers had to wait for the notification every year exempting the income tax. “It was a kind of Damocles Sword hanging on our head. Now, with this budgetary announcement, we need not have to worry at all,” said N Bose Mandanna, a large grower at Suntikoppa.

K Kurian, Managing Director of Devon Plantation & Industries Ltd, said the move would help the plantation companies to re-invest in developing their estates in the long run.

Besides providing a higher allocation of ₹4,344 crore to the agriculture department, Karnataka is targeting to distribute ₹11,000 crore in agriculture loan to 23 lakh farmers in the State. To implement the new crop insurance scheme during 2016-17, the State has earmarked ₹675.38 crore.

source: http://www.thehindubusinessline.com / Business Line / Home> Markets> Commodities / by The Hindu Business Line Bureau / March 18th, 2016

Govt plans to buy plantations to restore elephant corridors

Bengaluru:

In the wake of increasing human-elephant conflict in Hassan, Kodagu and Chikkamagaluru districts, the state forest department has decided to acquire coffee and tea plantations to curb such conflicts and ensure a safe passage for jumbos.

The department mooted this proposal after some coffee and tea planters volunteered to give up their land as they’re unable to cope with many problems including acute labour shortage, weak prices and rising maintenance cost of their estates.

But planters are not ready to give up their plantations cheaply. “The offers have started to come, with one from Sakleshpura for about 2,300 acres that would cost approximately Rs 300 crore,” principal chief conservator of forests (PCCF) Vinay Luthra said.

With a recent amendment to the Forest Development Tax (FDT), funds needed to buy these estates would not be an issue, said Luthra. The department can rake in up to Rs 600 crore per annum through FDI and utilise it for purchase of properties.

Wildife experts welcomed the idea but expressed caution, citing that the purchase of properties should be done scientifically.

“While it is a good start, the purchase of properties must be taken up after a peer review and an expert panel on elephant habitats giving its approval that such parcels of land are a good investment,” said wildlife expert Pradeep Bhargava.

Bhargava said forest minister Ramanath Rai and the department had held a consultative meeting in Mysuru in December 2015. He said the starting point should be the linking of Bandipur, Nagarahole, Brahmagiri, Satyamanagala, BRT Hills and Mudumalai.

Forest authorities have been holding talks with corporates to seek their assistance through their Corporate Social Responsibility funds to restoreg elephant corridors and other wildlife conservation projects.

Luthra, however, said the department doesn’t plan to buy all 2,300 acres in Sakleshpur. The purchase will be based on a study done by wildlife scientist Raman Sukumar. The study has identified 88 traditional elephant corridors in India.

“We’ll restore only those areas where there is a possibility of restoring the traditional corridors. Our biggest concerns are in and around the Bhadra Reserve, Hassan and Kodagu and the department will buy properties in these region on top priority,” he added.

Luthra said the primary reason for people selling their properties is the difficulty in maintaining coffee estates and tea gardens. “Most people in Kodagu, Chikkamagalur, Hassan and other parts of the coffee- and tea-growing belts are old-timers. With their children living abroad and labour becoming increasingly difficult to procure, they have come forward with offers to the forest department for selling their land. It’s a good way for us to resolve this man-animal conflict,” said the PCCF.

The forest department also took measures recently to ensure that new constructions don’t come up in the elephant corridors or affect elephant movement in the forest area. The department has also interlocked forest ranges across the Western Ghats to ensure the smooth passage of elephants.

Expertspeak

* The purchase of land must be strategic and it needs to be taken up on a project mode. Dedicated forest persons should be involved in the process and land should be procured after taking into account the valuation of the location and not any other factor.
Pradeep Bhargava | wildlife expert

* This is a start. The proposal may not solve the problems immediately, but it will help in the long term to end the human-animal conflict in the state.
Vinay Luthra | PCCF

source: http://www.timesofindia.indiatimes.com / The Times of India / News Home> City> Bangalore / Sandeep Moudgal, TNN / February 23rd, 2016

Is 100% FDI in coffee a boon or a bane?

Coffee growers in Kodagu, Chikkamagaluru and Hassan districts are, however, apprehensive.Many want to know the measures taken to protect small and marginal farmers, who constitute 90% of growers in Karnataka.

Bengaluru :

When coffee growers in Karnataka were going through a rough patch due to labour shortage, elephant menace and unprecedented fall in prices, the Centre in November last year allowed 100 % FDI in five plantation crops: Coffee, rubber, cardamom, palm oil and olive oil. The decision, meant to rejuvenate the sector, is expected to have a huge impact on Karnataka, which accounts for 70% of India’s coffee production.

As of now, 100% FDI is allowed only in tea plantation. “Relaxed FDI norms will help coffee and cardamom growers since it is expected to bring in big overseas investors and retail giants besides enhanced technology utilization, automation, research, management and production of value-added products. Permitting foreign investment will also boost India’s coffee exports offering better prices for growers here, ” says Coffee Board chairperson Leena Nair.

Coffee growers in Kodagu, Chikkamagaluru and Hassan districts are, however, apprehensive. Many want to know the measures taken to protect small and marginal farmers, who constitute 90% of growers in Karnataka. Some coffee growers’ associations are holding talks to oppose the move as they fear small growers would be forced to sell their estates to foreign investors. Their entry may prove detrimental for small coffee planters, who may not be able to match the wages and technology of foreign players.

“The Centre should have held consultations and allayed fears before allowing FDI. But they have done in it in a hush-hush manner and kept us in the dark, making us believe that there is a hidden agenda,” says NK Pradeep, a Coffee Board member from Chikkamagaluru. Former Coffee Board vice-chairman Sannuvanda Kaverappa says a parliamentary committee that visited Chikkamagaluru last year to interact with coffee growers left in a huff. Nair allays all fears of growers saying: “The small-grower segment need not worry as enough safeguards have been provided and the Centre and the state government can always reject any FDI proposal in their segment.”

A Coffee Board executive says FDI will benefit coffee growers. The measure is expected to make the coffee industry vibrant like the tea sector, which opened gates for foreign investments in 2002. “Rather than starting a new venture, foreign investors may partner with existing plantations or trading companies. FDI will help boost developmental activities such as replanting, rejuvenation and R&D that need huge funding. It may also help in upgradation, modernization and automation of coffee-processing, curing, marketing,” he adds.

source: http//:www.retail.economictimes.indiatimes.com / ETRetail.com / Home> Industry / February 12th, 2016

Bean there, drone that… Coffee planters for an eye-in-the-sky to assess crop health

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Coffee plantation owners keen to use drones to assess crop health

Mumbai:

Enabled by unmanned aerial vehicles (UAVs), drones are leading agricultural data collection and facilitating precision analysis in agriculture globally, helping to improve crop yield.

Though the use of drones by civilians is as yet restricted in India, speakers at a recent coffee seminar urged the government to allow these hi-tech machines to help detect the health of the crop.

Apart from their military use, millions of farmers across the country could use drones and the new emerging technology to boost production and efficiency in their farms.

“We are on the cusp of a new era of farming, where precision agriculture practices can offer a new approach to crop management. We now have a technique that wrings out waste and uses data to maximise crop yields and profits. UAV technology is reshaping farming,” said Jaisimha Rao, coffee plantation owner and entrepreneur.

Game changer

Passionate about technology and agriculture, Rao noticed the lack of data-driven decision making while working on his family’s coffee plantation. He decided to combine the versatility of UAVs and computers, and ensure algorithms to analyse crops. Aiming to bridge the gap, Rao, who holds a Bachelors degree in Electrical and Computer Engineering from the Carnegie Mellon University, founded TartanSense. The company uses UAVs to capture and analyse aerial imagery.

Blanket restrictions

“Flying drones and gathering data is a game changer for agriculture, and especially for large plantations like coffee. How we can use this technology in India is the moot point, since the Directorate General of Civil Aviation (DGCA) has restricted the use of drones,” he said.

Pointing out that the “blanket restriction by the DGCA to operate drones would kill the enthusiasm of start-ups” such as his, Rao said his drones had worked in Indonesia, Japan as well as in the US, with drones costing upwards of $100,000.

Speaking about the new technology, Sanjiv Sarin, Managing Director and CEO, Tata Coffee, who was moderating the talk, said, “We are entering the future of the coffee industry. The Coffee Board can work for government clearances to use drones in agriculture.”

Though coffee is shade-grown among silver oak trees, Rao said, “drones will soon be able to look at a tree and avoid it. Over the next 6-12 months, we are going to have an UAV that can fly under the canopy, measure each and every coffee bush and get data for the planter. Canopy penetration will be the true essence of precision farming.”

Big data

Agricultural drones are UAVs used for precision agriculture, which is a modern method of farming globally that uses big data, aerial imagery and other means to optimise efficiency.

The drone collects the crop’s image and makes a colour coded map based on its health, which is then assessed by the UAV firm.

Drones are helping assess the exact nature and area of crop damage during natural calamities, and are helping save huge amounts.

Stating that a lot of people are fascinated by drones, Rao said the real value add “is not the hardware, which is about how to fly them and get the data, but to analyse it and benefit the farmer.”

Detailing the functioning of the UAV, Rao said, “Our drone flies for about 20 minutes, and then the battery is dead. It can survey about 150 acres. We send the images up to the cloud, and can then stitch the data into a nice map. Once you get the image and sensor data in a map, one can get an actionable report and help the farmer. This is where the real skill lies.”

source: http://www.thehindubusinessline.com / Business Line / Home> Economy> Agri Business / by Amrita Nair-Ghasalla / Mumbai – February 05th, 2016

Flavour of Kodagu coffee at international contest

‘The Romance of Indian Coffee’ is the Indian entry to the Gourmand International (Book) Award this time

The jacket of the book ‘The Romance of Indian Coffee’ written by journalist P.T. Bopanna.
The jacket of the book ‘The Romance of Indian Coffee’ written by journalist P.T. Bopanna.

The Indian entry to the Gourmand International (Book) Award this time is on what until recently was a south Indian addiction: coffee.

With the coffee culture proliferating across India, thanks to chains like Starbucks, Barista and Café Coffee Day, the routine act of consuming the black decoction stirred in milk, as most people do, and with or without sugar – which again is a personal choice – has acquired an uber-cool image among the Gen Y.

Bengaluru-based journalist P.T. Bopanna has brought alive this unique trait in his book The Romance of Indian Coffee , now shortlisted for the Gourmand International Award, where it will vie for the top honours among coffee books from Brazil, France, China, Thailand, and the U.S., to name a few.

Hailing from Kodagu, which is the home of coffee in India, it was natural for Mr. Bopanna to feel inspired to write on the brew which has a universal appeal.

“My earlier works were Kodagu-centric, but I found a wider canvas in coffee which is also related to Kodagu,” said Mr. Bopanna.

“The book traces the history of coffee in India with interesting titbits about the brew and how its cultivation in the shade lends it a unique flavour, unlike coffee grown in the open in most other countries,” explained Mr. Bopanna, who believes that making coffee is an art. Notwithstanding the proliferation of coffee bars, the best filter coffee, he said, was still prepared in the bylanes of Chennai and elsewhere in Tamil Nadu.

The contribution of Ivor Bull, a British planter, who introduced intercropping and is a legend among the locals, has been highlighted in the book as also recipes for making coffee liqueur.

But ironically, he notes that Kodavas, who market home-grown coffee to the rest of the world and have spanned a coffee culture in India, have taken after the British and prefer tea!

There are entries from as many as 64 countries for the Gourmand awards, started in 1995 as a celebration of global cookbook and wine book publishing. The final results will be announced on May 28 at Yantai, China.

source: http://www.thehindu.com / The Hindu / Home> National> Karnataka / by R. Krishna Kumar / Mysuru – January 31st, 2016

Enhancing Coffee Productivity and Small Farm Profitability

by Dr Amrit Patel

Favourable climatic factors along with a fairly dry spell of 70 to 90 days make Kerala an ideal place to grow coffee. About 76,000 holdings of average size of 1.1 hectare symbolise Kerala a small-holder coffee state but provides livelihood to one lakh families.

Since 1976, Kerala Forest Development Corporation has been managing all coffee estates. In 1990-91, Kerala had 84,016 hectare with coffee production of 21,884 tonne accounting for 31.06% and 12.89% share respectively in India. After two decades, during 2011-12, the area declined significantly to 20.53%, whereas the production substantially increased 21.65% of that in India.

Thus, yield which was very low at 260.47 kg/ha in 1990-91 as compared to 627.42 kg/ha of national average increased substantially to 809.52 kg/ha as compared to national average of 763.73 kg/ha in 2011-12. However, productivity of the coffee in terms of bearing area in Kerala (705 kg/ha) is lower than the national average [826 kg/ha].

Kerala accounts for 20.70% of total coffee area in India. Robusta variety having average lifespan of 60-80 years and requiring least pesticides covers 95% of planted area. For 2014-15, final estimates of total production of coffee in Kerala indicate 67,700 tonne [Arabica 2055 tonne and Robusta 65,465 tonne]. Robusta and Arabica account for 96.70% and 3.30% coffee production respectively in Kerala as against 70.03% and 29.97% respectively in India. Robusta fetches lower prices in domestic and international markets and its brewing value is comparatively lower than Arabica. Though irrigation can increase yield of Robusta by 60% to 70% small coffee growers do not provide irrigation due to high costs of sprinkler/drip irrigation system.

Planters prefer multi-cropping pattern [coffee, tea and spices] to optimally utilise resources and insulate plantation from vagaries of nature and market. A special feature of coffee plantation in Kerala is that coffee plants are grown under the shade of tall shady trees. Conducive climate, hills, greenery, flora and fauna enhance Malabar region’s attraction for tourists. Monsooned coffee is a special delicacy of the region. A less known fact about Malabar coffee is that it was discovered by accident. Wayanad region covers more than 33% of district’s coffee area and coffee is grown as a single crop as also with pepper. About 90% holdings in Wayanad region are below two hectare and are mainly owner-operated with least engagement of casual wage labour.

Marketing
With the economic liberalisation in 1991, the role of the Coffee Board has been diluted and the coffee pooling system was abrogated. In 1993, the Internal Sales Quota entitled coffee growers to sell 30% of their produce in the country. Subsequently, the amended Free Sales Quota in 1994 permitted growers to sell between 70% and 100% of their coffee either domestically or internationally. And finally, amendment in 1996 allowed them the freedom to sell their produce wherever they wished. This led to the emergence of intermediaries in the trade and in absence of regulated and development authority to coordinate and provide directions for coffee marketing, the middlemen collect coffee directly from farmers at reduced price and sell to wholesalers/exporters at high price. To tide over financial difficulties, farmers are often tempted to sell coffee in advance of the harvesting season which fetches low prices.

After the withdrawal of the Coffee Board, the vacuum created has been to some extent replaced by private sector initiatives like Indian Coffee Trade Association which began auctioning on a periodic basis. There are also efforts towards online trading which is being conducted through portal commodityindia.com. However, fact is that less than 10% of coffee is sold through auctions as most small growers prefer to sell unprocessed crop directly to exporters or roasters through agents.

With the rising coffee consumers in Kerala the demand for domestic consumption is expected to rise. In this context, when international coffee chains are already planning their aggressive strategic entry in Kerala, domestic coffee chains are also expanding their businesses to capitalise the market opportunities. The latest entrants include Hilite Group of Kozhikode, Beans and Flavours, a small coffee blender from Idukki district, and Tonico. The Hilite Group is reportedly planning to establish a chain of 100 coffee shops. The domestic coffee chains have the potential to succeed and produce some global brands on account of factors like ambience, product quality and services.

However, in the coffee value chain farmers capture not more than 20% of the end value. Other intermediaries and traders (local and international) and roasters gain substantially. It is estimated that roasters alone retain about 30% of the value. Brands also play an important role in the value chain. Since it is a buyers’ market, buyers collectively put in serious efforts to reduce the value for the primary producers. Mechanisms like certification are aimed at allowing fair margins at the producer level but in reality they become counterproductive.

Government’s Support
Government has initiated measures to help farmers raise coffee productivity, quality and small farms’ viability that include, among others, [i] restructuring bank loans and providing interest relief to coffee growers (a subsidy of 5% to small growers and 3% to large growers on working capital) [ii] rainfall insurance as a risk management support for coffee growers in collaboration with Agricultural Insurance Corporation [iii] in June 2010, the coffee debt relief package was implemented for the debt ridden small coffee growers with a total financial implication of Rs 241.33 crore [iv] Since April, 2003, Government of India has set up a Price Stabilization Fund aimed at providing financial relief to the growers when the prices of the commodities covered fall below a specified level [v] Investment in coffee gardens are subsidised ranging from 20% to 40% depending on the size of the holdings [vi] Coffee Board facilitates support for establishment of processing units, formation of growers’ collectives, among others.

Need for Focussed Attention

Action Research:
here is immediate need to mount Action Research Project to study comprehensively and understand following facts and suggest changes in policy and programme in consultation and dialogue with farmers.

[A] The reasons for coffee growers’ inability to [i] replant Arabica coffee being superior in many respects to Robusta [ii] irrigate Robusta coffee to increase yield by 60% to 70% when subsidy and bank credit is available to augment water resources [iii] upgrade quality of coffee when the Coffee Board provides support for establishing processing units, formation of growers’ collectives, etc. [iv] adopt scientific plant protection measures to control stem borer infestation [v] access services of technical staff for adopting scientific practices evolved by the regional research station to increase productivity, quality and profitability of coffee.

[B] Slow growth and development of coffee economy and impact on coffee growers’ financial status despite significant support is extended by the government and the Coffee Board in various forms.

[C] Farmers not benefitting despite the fact that the prices progressively increasing during 2004-05 to 2011-12 [i] in the international markets from 69.72 US cent/lb to 202.16 for coffee and for future trading in New York at 90.38 to 244.26 for Arabica and 34.09 to 97.25 for Robusta and [ii] in auction markets in India from Rs 72.16/kg to Rs 240.61 for Arabica and Rs 34.94 to Rs 113.99.

Enabling Measures:
Following enabling measures are necessary for enhancing coffee productivity, quality, and financial viability of small farms
.Product diversification, mechanisation of specific farm operations, professional management and technical inputs, post-harvest processing, supplementary income earning opportunities to enable small growers to remain in production chain with cost- competitiveness.
.Enhancing domestic consumption to help in price stability.
.Labour and social security reforms to enhance productivity and cost-competitiveness
.To crystallise in unambiguous terms the role of the government, International Coffee Organisation, Coffee Board, trade exchanges and traders to ensure reasonable returns to small growers and their effective participation in the markets.
.Vertical integration of small producers on lines of Amul Dairy and Gujarat Milk Marketing Federation in Gujarat to enhance value for the primary producers.
.Optimum utilisation of services currently offered by the Coffee Board viz. research, extension, development, quality ‘upgradation,’ economic & market intelligence, internal & external promotion of coffee marketing and labour welfare to create visible impact on coffee farmers’ economy.
.Efficient use of subsidy schemes for replantation, water augmentation, quality ‘upgradation’ and farm mechanisation should motivate/encourage growers to replant coffee with Arabica variety, provide irrigation to Robusta coffee, reduce labour-cost and improve productivity and quality of coffee.
.Creating awareness among farmers and facilitating them to access information through media and ICT about the online trading platforms and futures markets that should help them to take informed decision for their benefits.

(The author is former deputy general manager, Bank of Baroda, Gujarat. He can be contacted at dramritpatel@yahoo.com)

source: http://www.fnbnews.com / Food & Beverage News / Home> Top News / by Dr. Amrit Patel / January 16th, 2016