Post libralization scenario of coffee industry - A case study of coorg district
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Date
2007
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Publisher
UAS, Dharwad
Abstract
Coffee occupies a place of pride among plantation crops grown in India. It is the
second largest traded commodity next to petroleum. The study was conducted in Coorg
district of Karnataka, which is the highest producer of Coffee. Data was collected from
Madikeri, Somwarpet and Gonikoppal. The analytical techniques included were Trend,
Tabular and growth analysis.
The results revealed that trends in domestic prices and International prices of both
Arabica and Robusta decreased significantly in the earlier period, than in the mid period
the prices started increasing. While, in the later period the prices again started decreasing.
About 30 per cent of the categories of 4-10 ha of Robusta and Arabica growers
have reduced the area due to pests and diseases. All the categories (<4 ha, 4-10 ha and
>10 ha) had reduced the cost of cultivation by reducing the round or quantity of fertilizer
application, irrigation cost, taking less number of shade lopping and weeding. As a result
they realized the yield reduction.
Quantity of coffee processed was 2500 tonnes. Total variable cost formed a
substantial component (97%) of the total cost of processing of which cost of raw
materials (87%) constituted the major component of the total variable cost. Total quantity
of output was found to be 2125 tonnes out of 2500 tonnes indicating 85 per cent of
recovery. The net returns per tonne of output found to be Rs.1373 per tonne. Total
quantity of coffee exported exhibited a growth rate of 4.1 per cent per annum with the
unit price registering negative growth rate of 5.8 per cent.
Most of the small farmers are demanding for coffee board to carry out the
marketing of coffee.