Business · Energy & Commodities · 13 hrs ago
Karnataka coffee-growing area has barely changed in 15 to 20 years
Karnataka is India’s main coffee-producing state, accounting for more than 70% of national production.
Its coffee is grown on about 246,000 hectares, an area that has not increased for 15 to 20 years, according to Karnataka Planters Association chairman M. Salman Baseer.
He says growers face barriers to expansion, including land conversion rules, high borrowing costs, limited subsidies and a shortage of climate-resilient, high-yielding coffee varieties.
Baseer argues that growth should focus on better yields and premium, sustainably produced coffee rather than expanding farms into more land.
He also wants coffee covered by the government’s crop insurance scheme, saying drought and unseasonal rain can damage harvests.
He says more than 2,000 Karnataka growers owe between ₹400 crore and ₹500 crore, and some face bank action over unpaid loans.
The association is seeking a loan repayment pause and protection for plantation land from distress auctions, and says it will continue to press the government on these issues.
Karnataka’s coffee cultivation area has remained at about 2.46 lakh hectares for 15 to 20 years, according to the Karnataka Planters Association chairman.
The State produces between 2.5 lakh and 2.8 lakh metric tonnes of coffee annually and accounts for more than 70% of India’s production.
KPA chairman M. Salman Baseer said land conversion laws, limited credit and underfunded subsidies are among the barriers to expansion.
He called for greater focus on climate-resilient, high-density planting, insurance, long-term finance and marketing higher-value coffee.
Baseer also said more than 2,000 growers in Karnataka face financial distress and outstanding loans of ₹400 crore to ₹500 crore.
- Who
- Karnataka coffee growers and the Karnataka Planters Association, represented by chairman M. Salman Baseer.
- What
- The State’s coffee cultivation area has stayed at about 2.46 lakh hectares for 15 to 20 years.
- When
- The area has remained stagnant for the last 15 to 20 years.
- Where
- Karnataka, India.
- Why
- Baseer cited rigid land conversion laws, limited State-sponsored credit, underfunded subsidies, high interest rates and a lack of climate-resilient, high-yielding varieties.
This story does not have two clearly opposing sides.
To protect our global competitiveness, we should have a policy with a focus on yield intensification through climate-resilient, high-density planting and aggressive branding of our shade-grown gourmet coffees
We must aggressively market our shade-grown, hand-picked Arabicas and Robustas as premium, sustainably produced gourmet commodities to command higher realisations, rather than competing purely on bulk volume
The Ministry and the Coffee Board have been receptive, but we need to move with greater agility
Karnataka’s coffee cultivation area has remained at about 2.46 lakh hectares.
The Hindu published Baseer’s comments on the stagnant cultivation area and pressures facing growers.
- Cultivation area
- About 2.46 lakh hectares
- Duration of stagnation
- 15 to 20 years
- Annual production
- 2.5 lakh to 2.8 lakh metric tonnes
- Share of India’s production
- More than 70%
- Growers in financial distress
- Over 2,000
- Outstanding loans
- ₹400 crore to ₹500 crore
Sources
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