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Cocoa farmers strike gold in Andhra

T S Bhagawanulu in Rajahmundry

Very few farmers in parts of southern India which produces Asia's finest cocoa are aware that they are sitting on a veritable gold mine which can be exploited to meet the rising demands from domestic and international markets.

In Andhra Pradesh, the five coastal districts of East and West Godavari, Krishna, Visakhapatnam and Srikakulam are the principal producers of cocoa in the state as the climatic conditions are suitable for the crop.

''The advantages of cocoa cultivation are many. It is a non-traditional crop, grown as an inter-crop (between rows of coconut trees) and a person can earn as much as Rs 6,000 to Rs 15,000 or more per acre per year. It does not require fresh agricultural land for its cultivation and is environmentally viable,'' says farmer P Sheshagiri Rao from Lakshmipuram village in West Godavari.

Cocoa powder, derived from crushing and grinding the cocoa beans located inside the pod, is mainly used by the chocolate and ice-cream industry and by bakeries.

''Demand for cocoa from international and domestic markets has increased tremendously over the past few years outstripping supply. Despite the fact that cocoa cultivated in Andhra is the finest compared to other states and even among the Asian countries like Malaysia and Indonesia, its production has not kept pace with the demand,'' says field extension co-ordinator Vijay Kumar, looking after cultivation in the five cocoa-producing districts of Andhra Pradesh.

Till 1965, cocoa was unknown to India as a commercial crop. The Indian chocolate and related industries were totally dependent on imports of cocoa beans. Its cultivation in the country gained momentum as a commercial crop in the 1970s and, by 1980, cocoa was being raised in a total of 29,000 hectares in Kerala and Karnataka as an intercrop in the arecanut and coconut gardens.

In the subsequent years, the crop area dwindled to 16,000 hectares. By 1981, due to various reasons like a steep drop in cocoa prices, inadequate marketing arrangements, inability of the processing units to absorb the entire domestic produce and lack of incentives to export the surplus. The production was pegged at 7,200 tonnes.

By 1985-86, a ray of hope dawned for the cultivators as the processing units were able to absorb the entire domestic production besides leaving a surplus for exports. In 1983-84, the country made a beginning by exporting 1600 tonnes of cocoa beans valued at Rs 33 million. By 1991, India was exporting 1,118 tonnes of semi-finished products like cocoa powder, cocoa butter and paste besides finished products like chocolates together valued at Rs 65.7 million.

In a bid to give a boost to cocoa production, Cadbury India Limited, one of the largest private sector consumer of cocoa, ventured to come forward to offer extension services to growers for promotion of the crop. In the 1990s, the company successfully introduced the crop in East and West Godavari districts reaping rich harvests.

Considering a growth rate of 20 per cent per year from 1994 onwards, Cadbury has forecast a demand of 17,000 tonnes by the year 2000 and domestic supplies at 7500 tonnes leaving a gap of 9500 tonnes which has to be met through imports. By 2005, the demand is projected to grow to 26,000 tonnes with domestic production making up for 10,000 tonnes still leaving a deficit of 16,000 tonnes.

The Cocoa Development Council, a private body promoted by Indian Confectionary Manufacturers Association with the aim of developing cocoa cultivation, says the demand for the produce would be 31,000 tonnes by 2005 with domestic production lagging behind demand at 10,000 tonnes. Domestic consumers would have to import 21,000 tonnes of cocoa.

''If India is to become self-sufficient in cocoa by 2005, Cadbury has indicated the need for doubling of cropped area of 12,400 hectares to 26,000 hectares. This means that 2.5 million seedlings should be planted every year from now,'' says CIL manager in charge of Andhra Pradesh M S Joseph.

He says the company had identified the AP where 25000 hectares area is available in 64,000 hectares of coconut gardens for planting cocoa crop.

The Centre, in order to overcome the shortcomings in the cultivation of cocoa, launched a cent per cent subsidised 'cocoa development scheme' in the four states of Kerala, Karnataka, Andhra Pradesh and Tamil Nadu during the Eighth Plan period with an outlay of Rs 30 million.

The plan, which envisaged establishment of seed gardens, production and distribution of quality planting materials, had run into rough weather and achieved little progress mainly due to non-participation of cocoa growers in all the four states.

Joseph says the people do not realise that the profit margin of cocoa cultivation continues to remain very high. The cost of production for every kg of wet beans was Rs 3.60 and on an average each cocoa plant yield was about three kg.

Cadbury's, which enters into agreements with farmers, offers remunerative prices to encourage them. In the present season it is giving them Rs 52 per kg of dry beans.

Vijay Kumar says the hybrid variety of cocoa, developed by the Kerala Agricultural University (Trichur) in collaboration with Cadbury's, known as F1 hybrid, enhances cocoa yield by as much as 30 per cent compared to the wild variety.

''We introduced it in the state recently and found that it takes two years to bear fruit unlike the ordinary variety which takes about four years,'' he said.

The entire produce of the state is bought by Cadbury's, which has opened five centres in East and West Godavari districts. After drying the wet beans the farmers take their produce to these centres where they are paid money immediately in cash or cheques. There are no middlemen involved in the deals.

''We are keen to bring more areas under cultivation provided the government gives us subsidy,'' says farmer S Srinivasa Rao from Lakshmipuram village in West Godavari district.

Rao, who took to cocoa cultivation in 1992, began to get a net income of Rs 1,500 per acre in the second year, Rs 6,000 from the third year and now expects to make Rs 10,000.

Kumar said there was an enormous potential in East Godavari district alone for producing cocoa on a largescale to the extent of 20,000 hectares in the coconut gardens as intercrop due to favourable climatic conditions.