Cocoa farmers staring at a crisis in A.P. as price plummets

Cocoa farmers in Andhra Pradesh face crisis as domestic prices fall, demand government intervention for fair pricing.

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The cocoa farmers in the State are starting at a crisis following a sharp fall in the price. While international prices are on the rise, the prices in domestic markets have shown a negative trend, and a kg of cocoa is quoted at about ₹500 a kg, much below what it fetched last year.

The farmers, going by last year’s experience, hoped that it would fetch not less than ₹1,000 a kg this year too. But the prices initially hovered around ₹600 a kg and then began to slide further, much to the concern of the farmers. They now fear further price fall unless the State government intervenes.

Simhadri Satyanarayana, a cocoa farmer from Challa Chintalapudi in Dendulur mandal of Eluru district, recalls that they sold their produce for anywhere between ₹800 and ₹1,000 a kg last year. “The international prices are at ₹750 per kg now. But there are no buyers for the stocks with the farmers. The farmers are already reeling under losses due to pest attacks and low yield this year. On an average, four to five quintals of cocoa per care is produced in an orchard of at least eight years old. But this year the yield has come down to two and a half quintals per acre. The falling prices have further worsened situation,” Mr. Simhadri laments.

Andhra Pradesh Rythu Sangham State joint secretary K. Srinivas says that the cocoa procurement companies are exploiting farmers by offering lower prices. “The current price paid by procurement companies is far below the market rate, and the government is turning a blind eye. We demand that the government fix a minimum support price of ₹900 per kg and intervene to protect farmers from falling victim to corporate manipulation,” he says.

Eluru district Horticulture Officer S. Rammohan says the farmers who stored old cocoa beans during the off-season have been advised not to mix them with the new season’s beans. “The mixing of old and new beans has been cited as a reason for the companies’ reluctance to make purchases. The companies are currently purchasing the new season cocoa beans (from January) at a price of ₹600 per kg. The farmers are advised to store the old and new cocoa beans separately. Once this is done, the companies are ready to proceed with the purchases,” he informs. 

Cocoa farmers mostly from erstwhile West Godavari district are said to be holding on to their stocks, hoping for better prices during the peak season from November to June.