For two years 2016-17 and 2017-18 there was a fall in production of coffee. While domestic consumption doubled over a decade, according to the Coffee Board, exports have not been promising. The recent extensive damage caused by rains predict a steep fall in production of coffee in the coming season.
“There will be a loss of about 10 per cent of coffee production this year due to the unprecedented floods that hit the arc from Chikmagalur to Kodagu (former Coorg) in Karnataka and to Wayanad in Kerala. The bigger producers will ride the loss and make it up via higher coffee price. Medium and small producers will be the immediate sufferers.”
This assessment, by a former technocrat-turned estate owner belonging to Wayanad, perhaps explains the relative absence of panic over the impact of the floods on the coffee market.
While the national spotlight remained trained on Kerala’s plight due to the floods, it is clear now that the plantation industry in Kodagu region also bore the brunt of the monsoon’s fury.
Venkatesh Bhat, an IT professional-turned planter in Kusalnagar close to the district capital Madikeri (former Mercara), lost his entire estate, including a home, in the hill slopes.
For the majority of small holders, recovery will be a long process. Bhat felt that those affected needed sustained help to restore their land holdings that were flattened by the rampaging waters and mud.
Small holdings in large numbers….
Karnataka and Kerala have each about 80,000 small holdings of 10 hectares and less. With 2250 large holdings, of more than 10 hectares, Karnataka produces much more coffee than Kerala’s 280 such holdings. Kodagu occupies a prime place.
After two years of drought which hit the coffee crop, the summer this year began on a promising note, with planters hoping for a good crop. The plants were well-rested and had gone through blossoming and fruit formation. Torrential rains in July and August were so overwhelming that there is yet to be a proper assessment of the total damage. Apart from the several thousand acres that have been washed away in the rain and mud, the standing plants are threatened by water logging at the base, which can kill the plants.
Excessive rains…
The rainfall in the western coastal region has in fact been unprecedented this year. Karnataka (2565 mm), Kerala (2140 mm) plus the Konkan Goa coast (2418 mm) together received nearly half the total for the country, with the rest of the regions getting about 15,530 mm so far this year. The low pressure over the coastline stayed constant for a fortnight, according to the national met office.
For two years 2016-17 and 2017-18 there was a fall in production of coffee. While domestic consumption doubled over a decade, according to the Coffee Board, exports have not been promising. Brazil reporting a bumper crop for the second year, demand for Indian coffee has gone down. The main destinations are Italy (19.3 per cent) and Germany (10.9 per cent) followed by Russia and Belgium.
The Coffee Board said: “the final crop estimate based on crop harvest data for the year 2017-18 is placed at 316,000 MT comprising of 95,000 MT of arabica and 221,000 MT of Robusta. There is a overall decline of 34,400 MT (-9.82%) over the post blossom estimate of 2018-19 (350,400 MT).”
Compared to final crop of previous year 2016-17, there is a marginal increase of 4000 MT (1.30 per cent). During the year, Arabica production showed an overall decline of 8100 MT (-7.86 per cent) and robusta declined by 26,300 MT (-10.63%) over the post blossom crop estimate.”
