SMALL GROWERS AND COFFEE MARKETING–ISSUES AND PERSPECTIVE FROM THE FIELD

Abstract

Issues of marketing of and trade in Coffee assumes importance due to its export potential as well as the livelihood dependency of large number of small growers (98% of holdings). Global coffee market is characterised by enormous clout of roasters and exporters at the upper end of the value chain (who appropriate over 60% of value) and increasingly the value accrued to the primary producers has reduced (to mere 6 – 7%). Given that it is a buyer’s market (oligopolic), small growers have limited or no incentive for productivity enhancement, innovation and for participation in niche markets. Liquidity exigencies force most of them to sell green coffee at the farm gate. Production structure is unsustainable due to high labour costs. Thus, sustaining coffee farmers’ income (and especially smallholders) requires support from the government and private sector. Initiatives like coffee certification, multi-sectoral partnerships for sustainable coffee value chains need to gain confidence of small growers in India. Small growers expect a more aggressive role of the Coffee Board to facilitate market access, support to co-operative movement and for diversification. Given that Coffee is grown in a multi-crop production environment, small growers expect support from stakeholders for ‘plantation economy’ as a whole for secured livelihoods and not only for efficient coffee production thereby buffering risks. It also helps in environmental and bio-diversity conservation. Some concrete recommendations to support small growers include, addressing short term liquidity problems, use of MGNREG labour works for their benefit, creating incentives (and market mechanisms) for environmental conservation, stabilisation of production environment through mechanisation. Market access through invoking origins, unique indigenous certification, brand building for domestic and export markets, organisation of small growers for inter-sectoral partnerships are few other important suggestions in this direction.