A crisis is brewing in the coffee industry
The Hindu
Coffee cultivation is becoming an increasingly loss-making proposition in India. Already weighed down by the high cost of inputs and production as well as labour shortage, the industry is now also affected by changes in climate patterns, reports Mini Tejaswi from Karnataka’s coffee heartland
Bose Mandanna was devastated when torrential rains in September thrashed the coffee plants in his plantation and left tender berries and leaves strewn everywhere. The plants stood partially submerged in water for weeks at Subramanya Estate in Suntikoppa in Kodagu district of south Karnataka. Soon, the plants began to rot. Mandanna was among the hundreds of coffee growers in the region to suffer this plight.
In the coffee heartland of Karnataka, comprising the Kodagu, Chikkamagaluru and Hassan districts, big and small planters narrate stories of destruction caused by heavy rains between July and September. The impact of the rains continues, with diseases affecting plants, and estate infrastructure suffering long-term damage. Plantations in Wayanad in Kerala and Palani in Tamil Nadu have also suffered similar losses. “Erratic weather conditions are helping pests to breed and new diseases to emerge,’’ says H.T. Pramod, former Chairman of Karnataka Planters’ Association (KPA) and owner of Hulikere Estate in Chikkamagaluru.
Drastic changes in climate patterns over the last few years have adversely impacted India’s coffee production and the quality of the crop. There were dry spells between 2015 and 2017 and unseasonal heavy rains, floods and landslides between 2018 and 2022. According to the Coffee Board of India’s post-blossom estimate, production for the 2022 crop year was estimated at 3,93,400 metric tonnes. But given the extreme climatic conditions, it is anticipated to be some 30% lower.
The KPA reported fruit rot, stalk rot, root rot and other irreparable damage due to heavy rainfall and landslides. “Affected by stalk rot and root rot, berries turned black and dropped,” says KPA Chairman N. Ramanathan. “Coffee growers are facing a severe financial crisis due to the vagaries of nature.” The KPA expects this year’s production to be down by 35%. “Coffee, which is supposed to be harvested by December, is largely damaged,” says Mandanna, who is also a former member of the Coffee Board.
Most growers fear that the frequently occurring pattern of droughts and floods could wipe out plantations. “Sturdy and weather-resistant varieties of coffee may help, but sadly the government is not providing adequate funds to coffee research stations to develop these,” says Pramod.
Climate change has only compounded the financial issues of growers that have been in the making for long. The volatility in market prices and the reduced influence of producers in the value chain render coffee cultivation an increasingly loss-making proposition. “Producers are getting marginalised. This is rapidly turning out to be a buyer-driven commodity market,” says Ajoy Thipaiah, Coffee Committee Chairman of the United Planters’ Association of Southern India (UPASI).
More than 75% of Indian coffee production is exported. This has an impact on the cost competitiveness of Indian coffee vis-à-vis the coffee that is exported from other producer regions, especially since those growers get their finances at very low interest rates, explains Mr. Thipaiah.