Cadbury's buyback pact buoys cocoa cultivation in Godavari districts

Cocoa cultivation is gaining momentum in the East and West Godavari districts, thanks to Cadbury India Limited's buyback agreement with the cocoa farmers in the twin Godavari districts.

Cadbury India is at present procuring Rs 30 crore worth of cocoa beans from the farmers. The cocoa beans' cultivation is expected to shoot up in leap and bounds in the near future.

Cocoa cultivation was first started in Visakhapatnam and later in the twin Godavari districts a decade ago.

However, due to the lack of marketing avenues, the farmers stopped cultivating cocoa. With the recent encouragement given by the government as well as private chocolate companies like Cadbury India, coconut farmers in the region are now growing cocoa plants in a big way, that too as an intercrop.

Cocoa plants grow in a cool climate and under the shade of coconut trees. Having a suitable climate and massive coconut groves in the region, cocoa cultivation is now becoming more popular among the East and West Godavari farmers.

Speaking to Business Standard, DV Subba Rao, deputy director of horticulture, said, "Cocoa plantations are being grown in 1,200 hectares in East Godavari and in 5,000 hectares in West Godavari. The plant grows and comes to fruition in six months. November to June is the ideal season to grow cocoa. Close to 60 lakh kg of cocoa beans are produced in 6,200 hectares. A plant gives two kg of beans on an average and 100 plants can be grown in an acre of land. One kg of cocoa beans cost Rs 60. Cocoa is being cultivated in an additional 1,500 hectares in the region this fiscal."

Subba Rao said that the horticulture department is supplying the cocoa plants on a subsidy to the farmers. "While the cost of each plant is Rs 3.50, the department is supplying the same at Rs 2.50 per plant," he added.

"More and more coconut growers are taking to cocoa cultivation as they grow under the shadow of the coconut trees and do not need any extra effort to take care of them or to nurture them. With little investment, huge profits can be earned due to the hundred per cent buyback agreement with Cadbury India. The cultivation in the current year has surpassed that of the previous year. We expect the cocoa cultivation in the region to shoot up next year," he said.