Cocoa output seen up 10% on higher prices

Firm overseas and domestic prices, coupled with higher demand from health drink and chocolate makers, are likely to result in an 8-10 per cent rise in India's cocoa output in 2006-07 (April-March), industry officials said.

In 2005-06, India produced 10,175 tonne of cocoa and around 27,800 hectare was brought under cocoa cultivation, according to data from the Directorate of Cashew and Cocoa Development.

Cocoa, which is largely an inter crop with coconut, is mostly grown in the southern states and in few districts of Maharashtra and Goa. Cocoa beans are the primary raw material for confectioneries, beverages, chocolates, and other food products.
 

THE BIG PICTURE
STATE	2003-04			2004-05			2005-06
	A	PDN	PDY	A	PDN	PDY	A	PDN	PDY
Kerala	9275	5200	700	10220	5900	700	10220	6490	770
Tamil Nadu	400	200	500	800	200	500	1421	220	330
Karnataka	6000	2500	416	6000	2500	420	6000	2750	825
Andhra Pradesh	7953	600	370	10170	1840	750	10170	715	187
TOTAL	23628	8510	500	27190	10440	575	27811	10175	530

"New plantations are coming up in Tamil Nadu, Kerala, Karnataka, and Andhra Pradesh. The growth rate of cocoa cultivation is seen at 8 per cent year-on-year," Venkatesh N Hubballi, director-in-charge, Directorate of Cashew and Cocoa Development, said.

The official said the cocoa body has taken several steps to ensure that the 8 per cent growth is sustained and in Andhra Pradesh alone 3,500 hectare of land are being brought under cocoa cultivation every year.

"Good overseas as well as domestic prices for cocoa have attracted growers to cultivate more cocoa," Hubballi said.

Cocoa cultivation in the country was going through a bear period during early 1980s and 1990s due to lower procurement from domestic health drink manufacturers and weak marketing strategies, the official said.

Also, remunerative returns from arecanut or beetle nut also induced farmers to shift from cocoa. "But now with overseas prices ruling strong, farmers want to cash on the opportunity," he said.

Overseas cocoa prices tested a high of $1,792 a tonne in March last year. In domestic markets, average price for dry beans are hovering in the range of Rs 75-85 per kg.