India is the sixth larger producer of coffee in the world. It accounts for over four per cent of the global coffee output, and more than 90 per cent of this is produced in the southern states. In 2011-2012, India produced over 3.20 million tonnes and the employment generated was over 11 lakh. The country has over 1.71 lakh coffee farms in the country, spanning nearly 9,00,000 acres of coffee trees. Robusta is the more predominant of the two varieties grown in India, accounting for about 64 per cent of the total output.
India's coffee exports
In 2005-2006, India is said to have exported more than 440,000 pounds of coffee. It was a slight decline compared to the previous season's figure, and about five per cent less than the quantity exported in 2004. More than 25 per cent of the country's coffee exports go to Italy. Russia, which is the second largest importer of Indian coffee, accounts for over fifteen per cent of the country's coffee export.
Coffee Board of India
Indian coffee is unique in the sense that it is the only country where all its coffee is cultivated under shade. It is mild and not acidic, and there is no compromise on the taste and aroma. It is believed to have been introduced to the country about four centuries ago, when a visiting saint brought seven beans from Yemen and planted them in Karnataka's Chandragiri hills. For over 150 years, India has consistently produced a wide range of coffees which are sought-after in many countries of the world on account of their quality.
According to Coffee Board of India, “India cultivates all its coffee under a well-defined two-tier mixed shade canopy, comprising evergreen leguminous trees. Coffee plantations have almost fifty different varieties of shade trees. Shade trees not only prevent soil erosion on a sloping terrain, but also enrich the soil by recycling nutrients from the deeper layers, protect the coffee plant from seasonal fluctuations in temperature, and provide a natural habitat for many species of animals and plants.”
“Coffee plantations in India also have a variety of spices and fruit growing alongside. These include pepper, cardamom, vanilla, oranges and bananas. The coffee-growing regions of India have a mix of climatic conditions, and each of these is conducive for the cultivation of a different variety of coffee. Regions with high elevations are ideally suited for growing Arabicas, and those which have warm and humid conditions are best suited for Robustas,” the board, which functions under the auspices of the Ministry of Commerce and Industry, Government of India, stated.
Arabica and Robusta – A comparison
Both Arabica and Robusta need deep, friable soil, which is rich in organic matter, well-drained and is slightly acidic (with a pH ranging between 6.0 and 6.5). The former grows best on gentle to moderate slopes, whereas either gentle slopes or fairly level fields are ideal for the cultivation of the latter. Arabica needs a higher elevation (between 1,000m and 1,500m) to grow than Robusta, which would require an elevation of 500m-1,000m. The main growing areas for both varieties are the northern, eastern and north-eastern parts of the country.
The temperature needed for the cultivation of Arabica ranges between 15 degrees Centigrade and 25 degrees Centigrade. It should be cool and equable. However, Robusta grows best in temperatures ranging between 20 degrees Centigrade and 30 degrees Centigrade, and requires a hot and humid climate. The former grows best in places where the relative humidity ranges between 70 and 80 per cent, and conducive conditions for the growth of the latter include 80-90 per cent humidity.
The annual rainfall ideal for the cultivation of Arabica ranges between 1,600mm and 2,500mm, whereas the ideal amount of rainfall for the growth of Robusta ranges between 1,000mm and 2,000mm. The blossom showers for the former occur in March-April, and the ideal amount ranges between 25mm and 40mm. For the latter, they occur in February-March and are roughly in the same range. About 50-75mm of backing showers fall in April-May for Arabica and a similar amount falls in March-April for Robusta. These are well distributed.
Important varieties
Kents: Kents, named after an English planter who selected it in the 1920s, is one of the foremost varieties of Arabica. It was popular with the planting community till the 1940s on account of it being less susceptible to rust. To date, it is grown in a few years and continues to be renowned for its cup quality.
S.795: It was among the most popular Arabica selections during the 1940s, owing to its high yields, bold beans, quality and of course, tolerance to leaf rust. In fact, Kents Arabica was used in its development. S.795, which offers a balanced cup with subtle flavour notes of Mocha, remains a widely cultivated variety of Arabica.
Cauvery: It is known as Catimor, on account of being a descendant of a cross between Caturra – a mutant of the Bourbon variety – and Hybrido-de-Timor. Cauvery, therefore, has inherited the high yielding attribute and the quality of the former, and the resistance of the latter.
Selection 9: Selection 9 has been derived from a cross between Tafarikela – an Ethiopian Arabica collection renowned for its cup quality (which Selection 9 has inherited) – and Hybrido-de-Timor. It is an award-winning variety.
South India is referred to as the cradle of Indian coffee. In fact, Bababudangiris in Karnataka is known as the birthplace of coffee in the country. But coffee plantation also takes place in the Eastern Ghats and the North-eastern states.
According to Coffee Board of India, “The coffee-growing areas of India are divided into three categories, namely traditional areas (which include Karnataka, Kerala and Tamil Nadu); non-traditional areas (which include Andhra Pradesh and Odisha), and the north-eastern region, comprising the 'Seven Sister States', namely Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland and Tripura.”
Region-wise specifications
Anamalais (Tamil Nadu)
Located at an altitude of approximately 1,000-1,400 metres above sea level, the Anamalais receive about 2,500-3,000mm of rainfall. The main type of coffee cultivated here is Arabica. The area under coffee cultivation is 2,500 hectares, and the average production is about 1,500 million tonnes. All the aforementioned varieties of coffee – namely Kents, S.795, Cauvery and Selection 9 are grown here. Pepper, oranges and bananas are the major intercrops
Araku Valley (Andhra Pradesh)
It is located at an elevation of about 900-1,100 metres above sea level and receives between 1,000 and 1,200mm of rainfall. Arabica is the main type of coffee cultivated here, particularly S.795, Selection 4, Selection 5 and Cauvery. The total area under coffee cultivation is 20,000 hectares and the average production is about 3,100 million tonnes. The main intercrops are pepper, mangoes, jackfruit and vegetables
Bababudangiris (Karnataka)
Believed to be the nursery for Arabica cultivation (particularly S.795, Selection 9 and Cauvery), the Bababudangiris are located at an elevation of about 1,000-1,500 metres above sea level and receive about 1,750-2,200mm of rainfall. The total area under coffee cultivation is about 15,000 hectare and the average production is about 10,500 million tonnes. Pepper, cardamom and areca nut are the chief intercrops
Biligiris (Karnataka/Tamil Nadu)
This region is noted for Arabica coffees, the prominent among them being S.795, Section 9 and Cauvery. It is located at an altitude of over 1,500-2,000 metres above sea level and receive about 1,100-1,200mm of rainfall. The area under coffee cultivation is approximately 800 hectare, and the average yield is about 700-800 million tonnes. The main intercrops are oranges, bananas and pepper
Brahmaputra (North-east)
It is the river that flows through India's north-eastern states. This region is located at an elevation of 800-1,200 metres above sea level and receives about 1,500-2,000mm of rainfall. Arabica is the main type of coffee that grows here (particularly S.795 and Cauvery). The total area under coffee cultivation (5,000 hectares) is relatively lower than other parts of the country, as the average output (300 million tonnes). Pineapple, pepper, jackfruit and vegetables are the major intercrops
Chikmagalur (Karnataka)
Chikmagalur, located at an elevation of about 700-1,200 metres above sea level, receives about 1,000-4,500mm of rainfall. It is a major centre for the cultivation of both types of coffee, namely Arabica and Robusta. Such variants of Arabica as S.795, Selection 5B, Selection 9 and Cauvery account for about 37,000 hectares and Robusta variants like Peridenia, S.274 and CxR account for about 23,000 hectares. The average production of Arabica and Robusta are about 29,000 and 30,000 million tonnes respectively. The main intercrops are pepper, cardamom, areca nut, oranges and vanilla
Coorg (Karnataka)
Coorg is located at an altitude of 750-1,100 metres above sea level, and receives 1,000 and 2,500mm of rainfall. Both Arabica and Robusta are cultivated here. The area under Arabica cultivation (particularly S.795, Selection 6, Selection 9 and Cauvery) is about 26,000 hectares and that under Robusta cultivation (particularly S.274 and CxR) is about 56,000 hectares. The average yield of Arabica and Robusta are 24,000 and 69,000 million tonnes respectively. The main intercrops are pepper, cardamom, oranges, bananas and areca nut
Manjarabad (Karnataka)
It is located at an altitude of 900-1,100 metres above sea level, and receives 1,000 and 2,500mm of rainfall. Both Arabica and Robusta are cultivated here. The area under Arabica cultivation (particularly S.795, Selection 6, Selection 9 and Cauvery) is about 31,700 hectares and that under Robusta cultivation (particularly S.274 and CxR) is about 9,400 hectares. The average yield of Arabica and Robusta are 21,000 and 9,500 million tonnes respectively. The main intercrops are pepper, cardamom, oranges, bananas and areca nut
Nilgiris (Tamil Nadu)
The Nilgiris are located at an altitude of 900-1,400 metres above sea level, and receives 1,600 and 2,600mm of rainfall. Both Arabica and Robusta are cultivated here. The area under Arabica cultivation (particularly S.795, Kents and Cauvery) is about 3,600 hectares and that under Robusta cultivation (particularly Peridenia, S.274 and CxR) is about 4,000 hectares. The average yield of Arabica and Robusta are 1,400 and 2,800 million tonnes respectively. The main intercrops are pepper, oranges, bananas, ginger and vegetables
Pulneys (Tamil Nadu)
It is located at an altitude of 600-2,000 metres above sea level, and receives 1,000 and 1,600mm of rainfall. Arabica is the main type of coffee cultivated here. The area under Arabica cultivation (particularly S.795, Selection 5B, Selection 9, Selection 10 and Cauvery) is about 14,000 hectares The average yield of Arabica is 7,500 million tonnes. The main intercrops are pepper, cardamom, oranges, bananas and vegetables
Shevaroys (Tamil Nadu)
It is located at an altitude of 900-1,500 metres above sea level, and receives 800 and 1,500mm of rainfall. Arabica (particularly S.795, Selection 9 and Cauvery) is about 5,000 hectares. The average production of Arabica is 3,000 million tonnes. The main intercrops are pepper, oranges and bananas
Travancore (Kerala)
It is located at an altitude of 400-1,600 metres above sea level, and receives 2,000 and 4,000mm of rainfall. Robusta (particularly S.274 and CxR) is cultivated here. The area under Robusta cultivation is about 13,000 hectares. The average yield of Robusta is 9,000 million tonnes. The main intercrops are pepper, bananas, ginger, vegetables and medicinal plants
Wayanad (Kerala)
It is located at an altitude of 600-900 metres above sea level, and receives 1,100 and 1,200mm of rainfall. Robusta (particularly S.274 and CxR) is cultivated here. The area under Robusta cultivation is about 67,000 hectares. The average yield of Robusta is 54,000 million tonnes. The main intercrops are pepper, bananas, ginger and vegetables
Coffee Board of India has identified three specialty coffees – Monsooned Malabar AA, Mysore Nuggets Extra Bold and Robusta Kaapi Royale.
Monsooned Malabar AA
Monsooned coffee or coffee beans that have become swollen upon exposure to moisture from the air, is prepared at the curing works situated along the western coast of southern India. It is stored in special warehouses, where they are allowed to take on a mellow but aggressive musty flavour. During the process, the bean turns yellow and becomes less acidic. The result is a heavy, syrupy flatness typically associated with aged coffees.
For preparing monsooned coffees, only dry processed Arabica and Robusta beans are used. The coffees are mainly used in blends to mellow rougher and more acidic coffees and impart richness to them. Monsooned Malabar AA is one of the highest-graded coffees of this variety
Mysore Nuggets Extra Bold
These coffees are prepared from washed Arabicas grown in such regions as Chikmagalur, Coorg, Bilgiris, Bababudangiris and Shevaroys. The beans are large, bluish-green in colour and have a polished appearance in the cup. The coffee is aromatic, is medium to good-bodied, has a good level of acidity and a good flavour with a hint of spice
Robusta Kaapi Royale
It is prepared from Robusta Parchment AB from Coorg, Wayanad, Chikmagalur and Travancore. The beans are bold, round in shape and have pointed ends, and grey to bluish-grey in colour. It offers a full-bodied cup with a soft, smooth and mellow flavour
Organic coffees in India
“Organic coffees are the result of adherence to management practices that help conserve or enhance soil structure, resilience and fertility by applying cultivation practices that use only natural nutrients and methods of plant protection. In fact, many producers do grow coffee without the use of synthetic agro-chemicals. This approach is not sufficient for the product to be considered organic in the absence of credible certification by an accredited agency,” Coffee Board of India said.
Global perspective
Organic coffee is being produced by about 40 countries in the world. A major share of the production comes from Peru, Ethiopia and Mexico, and the major consumers are in Europe, the United States and Japan.
According to the US Organic Trade Association, “The global sales of organic coffee reached 67,000 million tonnes in 2006. This indicates a 56 per cent increase from the 2003 output (42,000 million tonnes). In the US alone, the sales of organic coffee amounted to about $110 million in 2006 – which was a 24 per cent increase from the previous year's sales. Organic coffee products are now marketed in the form of regular, decaffeinated, flavoured and instant coffee and other foods such as ice-cream, yoghurt, soda, candies, chocolate-covered beans, etc.”
Scope for production in India
India offers great potential for the cultivation of organic coffee, because conditions here are far more conducive to its growth than they are in a number of coffee-producing nations. According to Coffee Board of India, the country has the following advantages:
Coffee is mainly grown in deep jungle soils under a two-tier mixed shade canopy comprising evergreen leguminous and non-leguminous shady trees. Growing under shade has numerous advantages, including the fact that shady trees provide a habitat for a many species of birds and other enemies of pests, help reduce soil erosion, contribute towards the fertility of coffee soils by recycling nutrients from deep soil in the form of leaf litter and protect the coffee bushes from the vagaries of weather
Traditional farming practices such as the use of cattle manure, composting, manual weeding, etc. are in vogue in vast majority of small holdings
The availability of sufficient skilled manpower for labour-intensive operations like manual weeding, shade regulation, soil conservation measures, etc.
The horticultural practices followed in Indian coffee plantations are considered as one of the best in the world, in which emphasis is mainly towards manipulations of microclimate and plant health, so as to reduce excessive dependence on agro-chemical inputs
Apart from the aforementioned advantages, India's coffee industry mainly comprises small holdings, most of which are located in Kerala's Idukki district, Tamil Nadu's Bodinayakanur zone and the tribal areas of Andhra Pradesh and the North-east. The latter, in particular, grow organic coffee, but that is primarily because they cannot afford to procure plant protection chemicals and fertilisers (and also because they believe in natural farming).
As a result of this, their yields are low and are only at subsistence levels. Therefore, there exists a good scope to convert these small and tribal holdings into certified organic farms without much change in the existing farming practices.
Although there is good scope for the cultivation of organic coffee in India, the area currently covered was just 2,600 hectares and the output was just 1,700 million tonnes (as per 2007 estimates.) Most of this is concentrated in the three southern states – Tamil Nadu, Karnataka and Kerala.
Why the concept isn't popular in India
Despite the fact that the conditions are conducive for the production of organic coffee in India, the growth of the organic coffee sector in the country has been rather dismal. This is because of the following reasons:
A number of smallholder groups, particularly in Kerala, opted for organic farming during the great coffee price crisis (1999-2003). This step was taken primarily to reduce the cost of inputs. However, the cultivation of Robusta, which is not the coffee of choice in the international market, covered most of the available area
The quality of coffee produced by smallholder groups wasn't up to the mark as far as the specialty coffee market is concerned
The agencies which were behind the formulation of smallholder groups didn't have the marketing skills to promote the product in the international market
In the late 1990s, organic coffee fetched a good premium in the international market. But it began to dwindle and has touched the 15 per cent mark of late. Indian coffee's main hindrance is the lack of logistical support to importers, especially in the USA, which doesn't consider the premium for Indian organic coffee very attractive
From 2004 onwards, coffee prices became attractive and the prices offered in the regular market are high enough for the producers to sell their produce at the farm gate rather than in the export market
Despite the slow growth, some of the medium and large-scale producers of organic coffee have been able to realise high premiums in the international market for their organic coffee. This is because of their constant efforts in improving the quality of coffee and marketing. Even in case of smallholder groups, organic farming has offered good benefits through attractive premiums for pepper, vanilla, etc., which are grown as intercrops in their coffee holdings.
Publications
Coffee Board of India has developed a package of practices for organic coffee production. These are based on field experiments, surveys and case studies. It also brings out a number of publication of organic coffee farming. Prominent among them are technical documents including 'Package of Practices for Organic Coffee' and 'Guidelines on Production of Organic Coffee'; booklets including 'Permitted Inputs to Control Pests and Disease in Organic Coffee States' and 'Guidelines for Production of Organic Coffee', and extension folders on 'Know-how about Organic Coffee Certification' and 'Composition of Coffee Wastes'.
NPOP
NPOP stands for the National Programme on Organic Production. During the 1990s, the Ministry of Commerce and Industry, Government of India initiated the development of a national organic farming policy and put in place the production standards to encourage the cultivation and export of organic agricultural produce. The commodity boards functioning under the ministry's aegis were actively involved in framing the policy and standards.
NPOP officially came into being in 2000 and was notified under the Foreign Trade (Development and Regulation) Act, 1992 (FTDR Act) the following year. It was recognised by the European Union (EU), which had a regulation in place for organic agriculture (EC 2092/91). Under the policy, any product certified under the NPOP will have ready access to the European markets without the need of any additional EU certification.
The United States Department of Agriculture (USDA) also recognised the accreditation system India adopted under the NPOP. Now NPOP-accredited certification agencies are authorised to inspect and verify in accordance with USDA's National Organic Programme (NOP). However, it does require separate USDA accreditation. At present, there are about 20 accredited certification agencies in India.
Industryspeak
Coffee franchising
Coffee is much more than a tumbler of filter coffee in a South Indian home now. It is literally cooler, thanks to youth hangouts like Barista Lavazza, Cafe Coffee Day and the new entrant Starbucks, and that has made franchising an extremely lucrative business in the country. In fact, international groups also consider India a geography worth venturing into.
One such group is the Switzerland-based Global Franchise Architects (GFA), which builds, operates and franchises a niche portfolio of top food service brands. According to a company statement, “GFA launched its first brand in India – Pizza Corner – in Chennai in 1996, and since then, it has notched up a portfolio comprising four brands – Pizza Corner, Donut Baker, Cream and Fudge and Coffee World. Currently, the franchisor operates about 100 stores across the four chains in India. Over the last decade, GFA has developed six brands in seven countries – Bangladesh, China, India, Indonesia, Malaysia, Thailand and the United Arab Emirates (UAE). Its portfolio comprises over 225 stores.”
GFA Global, the parent company, supports its Indian arm with investments in new outlets, research and development, marketing, infrastructure support in designing and graphics, academy, etc. The company has a global support centre in Bangkok and support centres in India and Dubai to meet its global requirements.
Coffee World is a specialty coffee chain with over ten outlets spread across Delhi, Chennai and Kolkata. The size of the outlets ranges between 25sq m kiosks and 160sq m establishments.
The chief executive officer of the company is Joseph Cherian, who is based in Bangalore and shared a number of interesting insights about the Indian coffee space with FnB News in an interaction via e-mail.
When asked why coffee is such a popular beverage in India, particularly in the southern states, Cherian did not attribute it to the taste or health angles (which tend to be a big draw in the food and beverage industry), but said, “Coffee is considered a cultural icon down south. It is customary to offer visitors a cup of coffee. In fact, filter coffee is synonymous with South India.”
He was unperturbed by the fact that the aforementioned chains have significant footprints across the country and said the Indian coffee space is by no means crowded. “Today having a cup of coffee is not limited to merely sipping a hot beverage. It has also become a place to socialise, conduct business meetings, etc. Now instead of going to a five-star hotel for a meeting, people gather at the neighbourhood coffee shop, which also meets the requirement. As far as Starbucks' entry into the Indian market, I only foresee this segment growing,” he said.
Cherian said Coffee World does not perceive Barista Lavazza, Cafe Coffee Day and Starbucks as competition, adding that the chain – which operates over 100 outlets in five countries (namely Bangladesh, China, India, Indonesia and Thailand) and wants to expand through the franchisee model – is rather happy to welcome more entrants.
He said, “Apart from a range of high-quality offerings, our endeavour has always been to create a homely environment for our customers, and that is reflected in both the exteriors and interiors of the outlets.”
Coffee World's USP is the 100 per cent washed Arabica coffee blend, a mix of eight different varieties of coffee beans sourced from different parts of the globe. The menu also comprises salads, waffles and sandwiches.
When quizzed about a possible foray into the Mumbai market, Cherian said, “At present, we do not have any presence in Mumbai, but we are seeking qualified master franchisees for the metropolis, which is a high-potential market for the coffee business. With its unique position, we foresee Coffee World as a perfect fit with the needs of consumers in Mumbai.”
As far as the current and future trends in the coffee segment are concerned, he said, “With the growth in demand for coffee consumption, many new players are entering the market and it is imperative for every player to innovate. The market for the beverage will witness phenomenal growth, because the retail coffee chains are definitely here to stay.”
With regards to the Indian coffee segment, Cherian said, “Coffee has become extremely popular in India over the last few years and has evolved from a traditional beverage to a youthful, trendy one. Domestic consumption is growing at the rate of 5-6 per cent per annum according to statistics provided the Coffee Board of India, and the retail coffee chains have a massive role to play. As far as challenges are concerned, I reckon not enough locations are available at a fair rental price. Coffee shops need to be located in neighbourhoods with a high visibility and drive high traffic, which obviously comes at a premiums.”
Speaking about the beverages the company offers, he said, “Our range comprises hot coffees and non-coffee-based frappes (including ice-blended coffee), priced between Rs 40 and Rs 114, in addition to the aforementioned snacks.”
