AURORA’S BUSINESS SCHOOL

POST GRADUATE DIPLOMA IN MANAGEMENT PRORAMME

BATCH - 17(2021-2023) I YEAR II TRIMESTER

COMMUNITY DEVELOPMENT PROJECT TITLE

In Coffee plantation
Submitted

by

Proddutoori Shiva Sai

in partial fulfillment for the award of PGDM Degree of the Aurora’s Business School on

Dated: 30 – 06 - 2022

Roll No. DM-17-087

Under the Supervision of

Name of the Guide: Dr. Sangeeta Thakur

Aurora’s Business School

Near NIMS
Tel: 040 2335 1891/92, 23350061/62 URL:www.absi.edu.in e-mail us: infor@absi.edu.in
 `

AURORA’S BUSINESS SCHOOL

______________________________________________________________________
Date: 30-06-22
Place: Hyderabad

Certificate

This is to certify that the research work embodies in the present Project entitled as “PLANTATION
PROGRAMS” has been carried out by Mr. PRODDUTOORI SHIVA SAI, Roll No:DM-17-087
under my supervision, for a period of fifteen days as a part of Community Development Project
(CDP) of the Post Graduate Diploma in Management (PGDM) of the Aurora’s Business School.

I hereby declare that to the best of my knowledge that no part of this thesis has been submitted
earlier for the award of Degree at any other Institute or University.

Supervisor Co-Ordinator
 Date: 30-06-22
Place: Hyderabad

DECLARATION

I hereby declare that the project research embodied in the present thesis entitled “PLANTATION
PROGRAMS”, is an original research work carried out by me under the supervision of Dr Sangeeta
Thakur, Faculty, Aurora’s Business School in partial fulfillment of the requirement for the award of the
degree of Post Graduate Diploma in Management.

I declare that to the best of my knowledge that this thesis or a part of thereof has not been earlier submitted
for the award of degree at any another Institute or University.

Signature of the Candidate

PRODDUTOORI SHIVA SAI

Roll no: DM-17-087

Batch 2021-23

--
 ACKNOWLEDGEMENTS

I would like to thank everyone who is involved in helping me in producing this project
report by bringing out creativeness in this project.

I would like to take this opportunity to thank my Project guide Dr Sangeeta Thakur,
Faculty, Aurora’s Business School, for his/her undeterred guidance for the completion of the
report.

My parents need special mention here for their constant support and love in my life. I also
thank my friends and well-wishers who have provided their whole hearted support to me in this
exercise. I believe that this effort has prepared me for taking up new challenging opportunities in
future.

PRODDUTOORI SHIVA SAI

CONTENTS
EXECUTIVE SUMMARY
CHAPTER I – INTRODUCTION AND METHODOLOGY

CHAPTER II – LITERATURE REVIEW AND

RESEARCH METHODOLOGY

CHAPTER III – COMMUNITY PROFILE

CHAPTER IV – DATA PRESENTATION AND ANALYSIS

CHAPTER V - FINDINGS, CONCLUSIONS &

RECOMMENDATIONS

BIBLIOGRAPHY

ANNEXURES
EXECUTIVE SUMMARY

Trees are a precious gift of nature, due to the trees, this green earth and our life is happy.

Trees are true warriors who fight pollution for us right from birth and give us clean and beautiful
environment.

Trees have been on our earth for thousands of years they cannot move but can breathe like humans.
Trees absorb pure toxic carbon dioxide and provide pure oxygen to us.

Trees gives fruits and grains for us to eat throughout our life, rain is also due to which we get water
to drink, clothes, wood for fuel, paper, rubber, herbs for curing diseases.

During rainy days, soil erosion is prevented, leaves of trees make the land fertile, trees give other
animals an equal place to live and other valuable mineral wealth is also given by them.

But gradually since industrialization and urbanization has increased, the trees have been
indiscriminately harvested by humans, due to which the natural balance of the fall has been
disturbed.

Due to lack of trees in cities, there is less rainfall and air pollution also remains in greater quantity.

If the cutting of trees continues at this speed, then the day is not far when the Earth will be
destroyed.

Trees are very important for our lives, so we have to make people aware and plant more and more
trees so that our future will be safe and clean.

The tree is our valuable asset, if we continue to exploit it, then this wealth will end then our life
will also end.
We have to understand the importance of trees because they are the protectors of the whole nature,
as long as it is present on earth, then there is life on earth.

Without these the earth will become just a dry and barren planet.
INTRODUCTION
Introduction
This is how coffee industry in India has developed which is an excellent example of the eternal
struggle of lonely men for excellence in the rugged and lonely forests far removed from the Charms
of city life. The quest for the good life by steer hard work, honest seat and toil has converted the
once malarial infested tropical jungles of the south Indian maenads into flourishing plantation.
India produces one of the finest coffee seeds in the world. India is the second largest producer in
Asia next to Indonesia.
Coffee came to India in 17th century. It was brought to Karnataka by saints from Media. Indians
perfected the art of coffee cultivation over the years.

It was British planters who started commercial production of coffee in the late 1820’s primarily in
Chitmahal and Coorg.

The early planters in India preferred areas that enjoyed heavy rainfall. For example, Jolly and Parry
opened estates during 1823.25 near Shimura. Mr. Thomas established a large plantation in
Chainganger as early as 1830.

The maximum coffee planted in the early years in India was of Arabian variety. Noticeably the old
variety which had been of the quality of the original mecca introduced by a Muslim Pilgrim called
Baabda. Arabian variety cultivation reached all the time high in 19th century. Exactly at the same
time, there was an outbreak of pest and diseases which as white stem borer Cycloteuthids Quadrees
and coffee leaf rest (Hemialgia Victrix). The productivity and the output decreased drastically as
there was an epidemic destroying the coffee plants. The farmers’ woe was complete as there was
a heavy downfall in prices. To counter it, the farmers tried innovative methods like selecting
disease resistant Arabian seeds ‘Kents’ was one of the promising types introduced in this period.

During these periods significant studies were made by the coffee board research and extension
within the development of disease resistant varieties of coffee and plantation management
practices. Thus, coffee production which was 18,893 tons in 1950-51 increased to 68.169 tons in
1960-61. The production increased gradually and reached 3,01,200 tons in 2000-2001. Today India
enjoys about 3,40,000 hectares of coffee plantations, the majority of which is in the states of
Karnataka, Kerala and Tamil Nadu.
The present trends that emerge in our country are coupled with strong regional biases. Coffee is
an ideal example of this trend. It is more preferred in southern India where it is cultivated
assiduously. Of late, tea has made deep furrows in the strongholds of coffee area. The demand and
supply do not match that of coffee which is a cause of bother for the planters.

COFFEE CULTIVATION IN INDIA

In India, coffee cultivation is largely confined to the western ghats of the southern states, such as
Karnataka, Kerala and Tamil Nadu – Karnataka accounts for 53 per cent of the total area under
coffee plantation followed by Kerala with 28 per cent. Tamil Nadu accounts for 11 per cent of the
total area under coffee plantation and the remaining 8 per cent of the area under coffee plantation
is in the States of India. In terms of production of coffee in India during the year 2000-2001.
Karnataka accounts for 70 per cent of total production followed by Kerala with 23.4 per cent and
5.5 per cent by Tamil Nadu and the remaining 1.1 per cent by others states in India. There are two
varieties of coffee produced in India, namely, Arabica and Robusta. The Robusta variety is largely
cultivated in 51.6 per cent of total area, whereas Arabica variety of coffee is cultivated in 48.4 per
cent of the area. In terms of production also, Robusta verifies constitute 65 per cent of total
production, whereas it constitutes only 35 per cent of coffee plantation.

Apart from foreign exchange earnings of about Rs.300 crores a year, coffee generates
approximately Rs.80 crores by way of revenue such as excise duty, export, duty, less, sales tax,
income tax, etc. It provides round the year employment to about 3,70,000 workers and stimulates
the progress of remote backward rural areas. Coffee growing is predominantly in the small grower
sector. There are about 1,14,000 growers in the country owing a total coffee area of 2,34,531
hectares. Of the total 63,916 growers are in Kerala, 30,395 in Karnataka, 15,925 in Tamil Nadu
and 3,767 in other states.

AGRICULTURAL OPERATIONS IN COFFEE CULTIVATION

In Plantation, the production of coffee is a distinct agricultural operation. The different agricultural
operations in coffee cultivation correspond to the different stages in the plant growth. Though all
these operations are well inter linked with each other, it is possible to organize any one operation
in isolation without affecting the efficiency of others. This feature enables the planter to make
several choices instead of a single technique. Another important feature is that the use of these
techniques based on biological innovations are very sensitive in their achievement to the
differences in the availability of complementary knowledge and managerial ability. Hence, it is
necessary to give a brief resume of the importance of agricultural operations in coffee cultivation.

Coffee plant belongs to the family rubiaceous which comprises 400 general and about 5000
species. The genus of coffee is an important member of the family of Rubia cease and there are 67
species in this genus. Coffee species are divided into following groups. They are EU coffee,
Mascara coffee, Graceffa, and Panasoffkee, coffees that are native to Africa belong to first three
groups and the last group proffer species is native of India. Indo-China, Ceylon and Malaya. The
group of EU coffee includes the species such as coffee Arabica, C, Canephore, C, Congenial and
C. Liberia. The important commercial species that are grown in South India are coffee Arabica, a
tetrapod species with 44 chromosomes C Canephore and C. Liberia, A diploid species with 22
chromosomes. C. Arabica is a self-fertile species whereas all other species of coffee are self-sterile.
The species that are native to India are C. Bengalensis C. Kassiani, Weighting, and C. Traven
cogenesis.

Arabica is the most largely cultivated coffee in the world. It produces the best quality of coffee.
At present there are five commercially important varieties grown in India. They are selection 288,
795, 1934, San Ramon and Cauvery Hybrid, Robusta coffee with its variety 3.274 which is popular
for its better yield performance.

The states of Karnataka, Kerala and Tamil Nadu are the traditional coffee growing tracts, Andhra
Pradesh, Orissa, Assam, West Bengal, Maharashtra, Nagaland, Tripura, Manipur, Himachal
Pradesh, and Andaman and Nicobar Island are the non-traditional states where coffee cultivation
is explored on commercial basis, coffee being a perennial plant and any initial setback will exert a
lasting influence on its subsequent growth. Careful planting of healthy seedlings in fertile soil at
the right time is one of the important activities of growing. The salient features given below will
serve as a general guide to coffee cultivation.
 1. Choice of Land

Generally, a land with Lubricant regulation can be chosen as suitable for coffee cultivation. A
gentle slope is the most accepted type of land, commonly, in the major coffee producing countries
of the world, soils in the coffee zones are rich in organic matter. However, soils on the marginal
coffee lands can also produce economically good crops under a favorable climatic condition and
skillful management.

2. Elevation

Robusta coffee groups well at attitudes from 500-900 meters above mean sea level of Arabica
coffee requires higher elevations about 800-1500 meters above mean sea level. The attitude plays
an important role on growth and bearing habit of Arabica coffee. An ideal elevation is 1000 meters
for Arabica.

3. Topography

Land having northern aspect is considered to be best suited for coffee cultivation, because it paves
the way for a comparatively more equable temperature condition. Next to this, lands with eastern
aspects are preferred. Generally, the southern and western aspects suffer from larger exposure of
the plant to the sun and requires protection against this exposure.

4. Rainfall

A well distributed and uniform rainfall of about 1750 mm to 2000 mm per year is considered
satisfactory. Well defined wet and dry seasons are considered desirable for successful flowering,
vegetative growth and maturity of fruits. After the dry season early summer showers from late
February to early April would ensure good blossoms.

5. Temperature and Humidity

Temperature with a range of 15°C to 25°C is good for Arabica and 20°C to 30°C for Robusta. The
relative humidity of 70 to 80 per cent is ideal for Arabica and 80 to 90 per cent for Robusta.
 6. Nursery

A gentle sloppy area of sheltered land without large trees in the vicinity is selected for the nursery.
It should also have a perennial water source, sunlight to medium loamy soils should be used for
raising bed and polythene bag nurseries.

Germination beds of one meter width and of any convenient length raised to a height of 15 to 20
cm. from the ground level are necessary for sowing seeds in the month of January – February.
Germination of seeds will take place in about 45.55 days. Seedlings are also transplanted in the
secondary nursery beds 30 cm, apart in the month of February/March when the cotyledonary leaves
have unfurled. Seedings have to be lifted gently without damaging the root system.

damping off of seedlings leadings to their death. Seedings have to be treated with supernatant
liquid of cow dung scurvy once in a month after they commence to form the first pair of leaves
after transplanting. Four baskets of fresh cow dung are stirred up in 180 liters of water, allowed to
stand overnight and the clear supernatant liquid is applied. A fortnight later the seedlings may be
manured with urea 340 grams of urea Regular watering should be done to nourish the soil. Excess
moisture should be avoided as it may cause dissolved in 90 liters of water is applied to 1000
seedlings.

Phytosanitary conditions are essential for maintenance of a good nursery. Incidence of damping
off collar not can be controlled by application of organic fungicides like Dithiane M45, Captain,
Bavistin and Bentlee. Filtered over-head Pandal shade and application of organic fungicides will
help in controlling the brown eye-spot disease. The use of copper formulations to the nursery plants
is not advisable as they cause nodal disorder.

Cut worm infestation may be controlled by dusting BHC 10 per cent green bag infestation can be
controlled by spraying Exalux 25 EC or Scythian 50 EC. Soil should be examined for the presence
of parasitic nematodes. Insecticides should not be used in the nursery unless pest infestation is
observed.

Seedlings from baskets or polythene bags are planted in the field during August/ September of the
same year. The 18month old coffee plants are planted in June of the following year.

7. Preparation of Land
While clearing the forest, a number of useful tree species may be retained for providing shade for
the young clearing. Overcrowding should be avoided and the trees are to be spaced as to get
maximum shade from each tree. Retaining too many trees in the clearing would hamper create line
marketing. The tail trees should not be left since the drip from these will adversely affect the coffee
plants growing under them. In south-west monsoon areas, clearing of the forest could be under
taken from November to January and from December to March for the north-east monsoon areas.

8. Marking

The land should be divided into blocks of convenient size with foot-paths and road laid out.
Depending on the fertility of the land a planting distance of 1.5 to 2.5 meters either way can be
adopted for Arabica coffee in square planting on flat or gently sloping land. For Robusta coffee a
spacing of 2.5 to 3.5 meters is in vogue. Whenever wider planting distance is decided upon it is
usual to mark out an extra planting row between the two regular rows. The plants in the extra row
come in the middle of four plants of the regular rows. The plants in the extra row come in the
middle of four plants of the regular rows. This extra planting helps in quick covering of a ground
surface by their spread of plants. The rapid covering of ground prevents weed growth, loss of soil
moisture and soil erosion. Reduction in plant population, however, should not be unduly delayed
as it affects the permanent bushes.

9. Pitting and Filling

Pits of 45 cm cube are generally opened after the first summer showers. Pits may remain open until
the middle of May. They are then filled with the surface soil and heaped for transplanting root or
ball plants in June. A stake is fixed on the top of the mound to mark the center of the pit. When it
is decided to use the plants growing in the polythene bags for transplanting the closing of the pits
is usually done during August to October just prior to planting it is necessary to ensure that at this
period the soil for closing the pits is sufficiently friable and moist must not be very wet and sticky.

10. Planting

Planting with root plants or ball plants of 15 to 18 months old commences on the set of the
monsoon in June in South-West monsoon areas. It may extend up to August in north East monsoon
areas. Planting of 8.9 months old plants growing in the polythene bags commences during August
in the South-West monsoon areas and in September/October in the North-East monsoon areas.

After levelling the soil, a planting hole of about 20-25 CMS deep is made by scooping out the soil.
Root system either bare roots or with a ball of earth is placed in the hole and soil is filled and
gently pressed to pack the soil firmly and evenly. Top root should not be bent in any case since
such plants will never establish well in future. The soil around the seedling is packed an inch high
above the ground to prevent stagnation of water around the plant. The seedlings are protected from
wind swaying staking cross-wise. The soil around the seedlings should be mulched immediately
and artificial shade either with branches of Jungle trees or bamboo is provided in the summer
months.

11. Shade

Arabica needs adequate overhead shade depending on elevation whereas Robusta needs uniform
thin shade. It is customary to plant shade trees with coffee. Dadar is most commonly used as
temporary shade tree. Dadar stakes of two meters in length and about 10 cm, in thickness are used
for planting. These stakes are planted at 2 to 6 m. apart during June when south-west monsoons
commence. Permanent shade trees are generally planted about 12-14 meter apart. It is desirable to
plant a large number initially and thin out gradually as they grow and spread out.

12. Wind Belts

It is essential to raise wind belts on land exposed to high winds. These wind belts may consist of
tall and sturdy trees that can withstand high velocity winds.

13. Soil management

The primary function of the soil is to give mechanical support to plants and to store and supply the
required nutrients and water for growth of plant. Soil management practices are generally aimed
at conserving soil moisture so that the performance of the soil is satisfactory.

Generally, no digging is required once coffee has established under good shade in the new
clearings. However, thorough digging to a depth of 35-45 cm, is given towards the end of monsoon.
All weeds and debris are completely turned over and buried in the soil and the stumps are removed.
Soil cultivation on steep slopes may be confined to renovation pits and trenches across the slope
once in four or five years. In established fields. surfacing or soil starving is done towards the
beginning of dry period to control weeds and conserve soil moisture.

14. Liming

Experience and experiments have generally indicated that a soil with a P H around 6.5 optimum is
needed for a good growth of coffee in South India. It reduces ill-effects of soil acidity. Periodically
once in three or four years, liming is essential in all the coffee growing areas in South India. The
quantity of lime to be applied is determined by testing the soil.

15. Mulching

Mulching is an accepted cultural operation in young coffee clearings. It helps to maintain optimum
soil temperature and conserve soil moisture and acts as an effective measure to control erosion. In
addition, mulching adds to the fertility of the soil.

16. Weed Control

Weeds suppress growth and retard yield of coffee by competing for nutrients and soil moisture.
Generally, weeds are controlled manually, clearings are made three to four times in a year in
established coffee estates. During the monsoon the weeds are slashed again. Experiments, have
shown that application of weedicides can effectively control weeds in coffee plantations without
any adverse effect. Effective and economic control of weeds, can be best achieved with the
application of weedicides.

17. Irrigation

Soil moisture is often a limiting factor in production particularly in the areas of low precipitation
and long drought periods. Sprinkler irrigation is mainly used as it ensures against any failure of
good blossom or backing showers. In marginal areas where water is available in plenty irrigation
helps in establishing young coffee and shade. When the flower buds are matured, rainfall is needed
to induce flowering, scantly blossom showers may give rise to padding or pinking of spikers
resulting in cripples. In such cases sprinkler irrigation is used to supplement blossom or backing
showers. Irrigation Robusta coffee once in 20-25 days during the drought period of November to
April increases the number of nodes per branch and increases yield. This will maintain soil
moisture at the required level and promote continuous vegetative growth. Studies on soil moisture
have indicated that irrigation equivalent to 40mm of rain will be sufficient for this purpose.

18. Plant Handling and Pruning

Handling of the plant is one of the requisites of good management it leads to a strong framework
and promotes production of bearing wood. The plant is trained either to single stem or multiple
stem system. The single stem system of growing coffee is practiced in India. Under South Indian
conditions, handling and pruning are essential. Plant should be pruned lightly from the age of six
years onwards. Plants over 25 years in age have to be given medium to serve pruning once in four
or five years depending upon their physiological growth conditions.

19. Single Stem System

As soon as the plants reach a desired height (75 cm for Arabica and 105-120 cm for Robusta) they
are topped (the growing apex of the stem is severed). To reach this height, a healthily seedlings of
Arabica take about 9-12 months whereas it is 18.24 months for Robusta after transplanting in the
field. Topping is helpful as it restricts vertical growth, facilitates lateral spreading of branches and
increases the bearing area. Low topping is advocated in areas of heavy wind and severe exposure.
Suckers are periodically removed. Raising a second tier depends on the fertility of soil and
spreading habit of the plant. If the side branches of neighboring plants are close enough, a selected
sucker is allowed to grow and when it attains a height of 135-150 cm from the ground the sucker
is topped so that its lateral branches are spread out to form a crown of second tier.

20. Multiple Stem System

This is practiced in Kenya, Tanzania and Latin American countries. However, in recent years,
some planters in South India have adopted this method. This is applied when the old coffee requires
replanting, the existing plants are stumped and converted into multiple stems to yield until the new
plants grow. xxi) Rejuvenation and Replanting Rejuvenation of old coffee plants can be carried
out by collar pruning and developing a new frame-work from a sucker arising from the collar. This
can also be combined profitably with inter-lining of new plants. Inter linking in old fields is the
most practiced way of replanting old and debilitated strands.
COFFEE CULTIVATION IN TAMIL NADU

Coffee cultivation is mainly confined to the states of Karnataka, Kerala, Tamil Nadu and Andhra
Pradesh and on a limited scale to Arunachal Pradesh, Assam, Madhya Pradesh, Manipur,
Meghalaya, Mizoram, Nagaland, Orissa, Sikkim, Tripura and West Bengal.

In Tamil Nadu coffee is cultivated in an area of 30,650 hectares mainly in the districts of Nilgiris,
Coimbatore, Salem, Madurai, Din Digul, Quaid-E Millat, Tirunelveli, Ramanathapuram and
Kanyakumari.

Coffee had been grown for over a century in isolated hill ranges of Tamil Nadu, located in both
the Western and the Eastern Ghats of which majority of the area come under the influence of the
North-East monsoon excepting the tracts of Nilgiris Wayanad and Annamalai’s which get the
benefits of South-West monsoon rains. In Tamil Nadu coffee is grown about 15 per cent of the
total area in India contributing hardly 10 per cent of production. General intensification came to
be effects during the fifties and sixties due to intensive liaison work by the coffee board which
resulted in almost doubling the crop from about 8,000 tones to the current level of 15000 tones
during which time various credit facilities through coffee board development plan.

The coffee plants begin to bear in the third year. The best yield is obtained from the fifth year and
continues for about 30 years. The useful life of a coffee tree is reckoned to be about 50 years.

The coffee tree yields only one crop in a year in India. It blossoms in March April with the first
showers received after the preceding dry period. The barriers mature and ripen in the course of the
next 9 to 10 months, those on higher elevations taking a longer time.

STATEMENT OF THE PROBLEM

In India, most of the plantation holdings are small and small coffee growers constitute about two–
thirds of total area with an average holding size of 1-4 hectares. But the large growers constitute
about 35 per cent of the total coffee plantation with an average size of 38.4 hectares and accounts
for nearly 40 per cent of total production. During the year 1998-99 coffee was cultivated by
1,33,049 small growers and 2,984 large growers. India produces 260 mm kg of coffee per year.
Indian coffee production has a yield of 800-900 kg per hectare, which is low compared to the world
production average of 1,100 kg per hectare. Domestic demand for coffee has stagnated at around
60,000 tons per annum in the last few years. In fact, it has declined over a 10year period. Inspire
of an increase in purchasing power and enlargement of the beverage market, coffee consumption
shows a down trend. This has been mainly on account of raising coffee prices, which has led to
shift in consumption trends towards cheaper beverage tea.

India produces both Arabica and Robusta in almost equal proportion though Robusta is shown in
comparatively higher growth in production. Production has fluctuated between 3.75 million bags
to 4.57 million in recent years, coffee production is affected by a strong biennial cycle. Hence, the
present study is an attempt to analyze economics of cultivation of coffee for both variety-wise and
size-wise.
LITERATURE REVIEW&
RESEARCH
METHODOLOGY
Objectives

1. To understand the importance of the Coffee plantation.

2. To understand the SWOT analysis of Coffee plantation.
3. To study the cost and return of coffee plantation for variety-wise and size-wise.

LITERATURE REVIEW
According to Domor6 (1961), the total factor productivity consists of economies of scale, external
economies, improved health education, skills of labor force, better management and change in
product mix. The coffee growers are not sufficiently aware of such factors. He argues that due to
this reason the total factor productivity suffers heavily. Since, technical change is difficult to
measure directly, it is often measured by its effects on the growth of total factor productivity. This
study attempts to evaluate economic performance of coffee plantations of different districts of
Tamil Nadu State on the basis of change in total factor productivity. A positive rate of total factor
productivity is often interpreted as a healthy sign of technological progress.

Ashok Palikh7 (1966) measured the (state-wise growth rates) contribution of extension of
irrigation, extension of area and increasing use of chemical fertilizers on the growth of crop outputs
of eight different states of India including Tamandu for the period 1952-53 to 1961-62 with a
Cobb-Douglas model. He found out that co-efficient for land was positive and significant in all the
states except in Tamil Nadu and growth of crop output was explained by land to the extent of 70
per cent or more. His study has two schemes. In the first scheme he isolated the contribution of the
productivity and changes in cropping pattern one by one from the composite measure of
agricultural production. In the second scheme, he isolated the contribution of extension of
irrigation, extension of area and chemical production. He argues for the expansion of technical
inputs such as quality-seeds and chemical fertilizers for the next decade since irrigation may reach
sufficient attention in Tamil Nadu, over the years.

R. Giri8 (1966) attempted to study the contribution of land irrigation and fertilizer to the growth
of crop output in India at all levels. The period of analysis is from 1950-51 to 1962-63. They used
linear multiple regression models and concluded that land continues to be the major contributor to
the growth of crop output in India and irrigation and use of fertilizer were yet to play their
significant roles

C.T. Kurian and Joseph James9 (1979) studied the trend of agricultural production in Tamandu
between 1960 and 1970. They used the formula Vt-Vo/Vo to calculate the growth rates. In the
above form, Vt denoted the value of output in period t and Vo denoted the value of output in the
initial period. Their study indicated that during the period 1960-70 the yield and output growth
rates for the important crops in Tamil Nadu had shown positive growth rate and area under all the
crops except paddy and sugarcane had negative growth rates.

I.Z. Bhatty10 (1978) has discussed the earnings of the workers and their capacity to work in coffee
plantations. The analysis shows that there is an increase in the use of intermediate inputs per unit
of land. In order to assess the relative importance of different factors to change in technology, an
analysis of variance is used. The conclusion of the study is that the labor cost per hectare has
increased by 70.4 per cent.

Yoginder K. Alagh11 (1980) in his study on disparity rates of growth and productivity in Indian
agriculture, fitted Cobb-Douglas production functions of the food grains economy from 1961-62
to 1973-74, using gross cropped area, irrigation area and fertilizer inputs for the country as a whole
and for eight states. He found out that the estimates of dummy variables were all insignificant. In
this study cross cropped area was significant in Gujarat, Karnataka, Madhya Pradesh, Maharashtra,
Rajasthan, Tamil Nadu, Uttar Pradesh and West Bengal. Irrigation was significant only for Bihar,
Madhya Pradesh, Orissa and Punjab. The use of fertilizer was significant only to Bihar and Tamil
Nadu.

B. Sriram12 (1991) lists out different ways to strengthen the research design and efforts for
improving productivity in coffee despite the uncertainty prevailing in the international market.
Another important point raised is to take efforts to extend cultivation in new regions such as,
Andhra Pradesh, Orissa, Assam, Mizoram and Meghalaya. The study suggests that negative
propagation of Robusta could be one of the methods by which it may be possible to induce
earliness in bearing. The study suggests that research works should be initiated on the pathology,
seasonal cycle of growth, role of day length, effect of cultural practices, plant architecture,
stimulation of re-growth, effect of fruit on vegetative growth and efforts to control the spread of
berry-borer.

Raju and Govindarajan13 (1993), in their study intended to make a proposal for low-cost
technology for coffee cultivation in the pulleys emphasizing on cost reduction in labor. The
proposed methods of this study include control of weed growth, maintaining a single canopy of
permanent shade, doing away with lower canopy of temporary shade, broadcasting fertilizers and
avoiding hard pruning in order to reduce the contribution of labor thereby bringing down the cost
of cultivation by about Rs.1500 per acre. They are adopted at the Regional Coffee Research
Stations, Thanigai, Din Digul district of Tamil Nadu. At the same time the productivity is
maintained above average with a four year mean yield of 765,740,660 and 400-500 kg clean coffee
/acre in the cases of Cauvery and selection.

Jamshed Ahmed et al14, (1995) undertook a study to assess the performance of fine Arabica coffee
cultivations in different ago climatic zones of Karnataka and Tamil Nadu. The study showed varied
performance of different cultivators in various zones. Considering the performance of overall
zones, Selection 8 and Selection 795 indicated better yield response to favorable environment. The
study also revealed that the mean yield of the selections over all zones did not differ significantly.

T.N. Srinivasan16 (1995), observed that both young and old bearing plants are infected by
nematode in India. The young plants become unhealthy with lean and lanky stem older leaves and
turn yellow and drop away. It is estimated that 3000 hectares of coffee tracts in India are affected
by this nematode. The study suggested that care should be taken to keep the site free from weeds.
The sites should be planted with nematode tolerant varieties.

Sudhakar S. Bhat17 (1995) conducted a study during the continuous heavy monsoon period of
1994 in some of the estates of Koppa, Alder, Kalasha, Mallinder and Supergirl zones in Chitmahal
district. It reveals the following short comings in the management of black rot generally practiced
by the planters.

K. V. Keshavaiah18 (1995) conducted a study on water management in coffee. This study is

focusing on the importance of coffee irrigation in India. His suggestions will facilitate better
infiltration of water and the excess run-off water which can be stored at the downstream of the
estate as farm pond, in order to utilize for blossom irrigation or lifesaving irrigation on priority
basis.

P.G. Prabhakarao19 (1995) reveals that among the special coffee, the flavored coffee is becoming
popular throughout the world. This study presents a Simple Reproductive Methods for the
determination of added flavors in roasted and ground coffee. The method consists of isolation of
the flavor by stream distillation, solvent extraction and examination of the flavor concentrate. The
study found out that the encapsulated flavors containing 4.5 per cent cardamom oil and 5.4 per
cent clove oil were incorporated into Roasted and Grind coffee at 0.5 per cent to four per cent
levels. The study warrants that the suggested methods can be extended to determine the flavor
content in other flavored coffees.

B.V. Srinivas20 (1995) made a study on factors associated with crisis in different categories of
coffee growers of Karnataka. This study was conducted in Karnataka state considering the total
highest area and production of coffee in the country. The study revealed that only two variables
namely age and management orientation out of 19, significantly contributed to the variation in the
crisis level among the small coffee growers. The study found out that the small coffee growers are
at disadvantaged position owing to their localism, lack of mass media participation, resulting in
limited exposure to the developmental information

V.S. Korikanthimath21 (1995) in his study focuses on the cultivation of catamaran (Cauvery)
coffee with high density planting, which has been gaining an impetus during recent years. The
study highlights the multistoried cropping system, shade trees occupying the top most canopy,
followed by pepper, catamaran coffee, ginger and turmeric. A net profit of Rs 45,005/- per hectare.
is obtained from the cropping system.

K. Venkatesulu’s22 (1995) study reveals that coffee yields increased to 47 per cent in the case of
Arabica and up to 95 per cent in the case of Robusta by adopting soil moisture conservation
techniques and by restoring to overhead irrigation techniques. The study proposes the grant
subsidy to a maximum of 25 per cent of the actual cost per beneficiary whichever is less in case of
tube well on borewell with submersible irrigation plumb; 25 per cent of cost of water storage
reservoir; 25 per cent of the cost whichever is less in case of sprinkler equipment; 25 per cent of
the cost of whichever is less in case of drip system. The author suggests that by successful
implementation of the proposed water augmentation program, the productivity of small coffee
estates would increase the production of Arabica and Robusta and the returns thereof.

S. Glory Swaroopa and A.G.S Reddy24 (1995) studied the prospects of Bio fertilizers in coffee.
The study covers types and classification of bio fertilizers of nitrogen fixing biofertilizers,
phosphate mobilizing biofertilizers and organic matter decomposers towards economic and eco-
friendly farming. The study emphasizes complementary use of bio fertilizers and organic manures
within chemical fertilizer to sustain a higher level of soil fertility and crop productivity. In this
context, the extension workers are projected as ecologically friendly technologically feasible and
socially acceptable among coffee growers.

Gielgud et al.59 (2002) studied the trend in world tea production and export. India’s share in the
world tea production has slipped gradually from 38.12 per cent in 1960-61 to 28.83 per cent in
1990- 91 and further marginally came down to 27.45 per cent in 1999-2000. Similarly, its share in
world tea exports has been similarly decreased gradually from 36.41per cent in 1960-61 to 18.83
per cent in 1990- 91 and further decreased to 17.86 per cent in 1998-98

Muir60 (1997) in the paper commences by observing that, although coffee farmers in very poor
countries are usually relatively better off, such farmers have small income and thus have no surplus
for investment or to counteract a run of poor prices or crop failure. A producer organization is
having the benefits of liberalization without a danger of stifling rural development. It argues that
producers who can provide quality will be able to drive a wedge between the terminal market for
commodities and the price for their produce.

Nadarajah et al.61 (2003) studied the impact of low price on cultivation and production of small
Robusta coffee plantations in South Coorg. They observed that the low-price situation for coffee
experienced since late 90’s resulting in low returns in general and negative returns in some cases
forced

Krivonos62 (2004) evaluates the impact of coffee sector reforms during late 1980 and early 1990
on coffee growers in the main coffee producing countries. In most countries the long-term producer
price share has indeed increased substantially after the liberalization. Results suggested that the
reforms induced a closer co-integrating relationship between grower prices and world market
prices.
Chengappa63 (1981) studied the growth rates of area, production and productivity of coffee in
India. Linear model of the type Y(t) = a + bat and exponential model of the type Y(t) = bat was
used to work out the growth rates. The exponential function indicated a good fit of the annual
compound growth rate of production with 5.68 per cent for Arabica and 7.4 per cent for Robusta,
their combined growth rate being 6.1 per cent.

Bandopadyaya64 (1982) analyzed the growth rate of India’s share in world tea exports using the
simple linear trend equation. The results showed that India’s share in total world export of tea has
been consistently declining during the study period 1964 to 1978. One of the causes that
contributed to this.

RESEARCH METHODOLOGY:

Designing a suitable methodology and selection of analytical tools are important for a meaningful
analysis of any research problem. This section is devoted to a description of the methodology
which includes sampling design, collection of data, period of study, measurement of variables and
tools of analysis.

Collection of Data

The primary data as well as secondary data are used for the present study in order to analyze the
economics of coffee cultivation. The primary data were collected from selected respondents
through well-structured interview schedule. The secondary data were collected from the various
records of the Coffee Board, Seasonal Crop Reports and Reports of United Planters’ Association
of South India (UPASI). The growth trends in the area of cultivation, production and yield of
coffee crop were analyzed with the help of these data.

The remaining data and other information were collected from various issues of Agricultural
Situation in India (ASI), Planters Association of Tamil Nadu (PAT), published report from
government and their subsidiary organizations, books, magazines and dailies.

Measurement of variables

Human labor was measured in terms of man days. A man day is equal to five hours of work per
day. These man days include the work done by both male and female laborers. Since the average
rate of wage given to the female worker was found to be 75 per cent of the wage rate given to the
male workers, three fourth units of female workers are standardized as equal to one male labor.
This human labor includes hired labor and family labor as well.

CONCEPTS

The various concepts used in the study are I) hired labor, ii) family labor, iii) total income, iv)
planting material, v) inorganic fertilizer, vi) small and large farmers, vii) farm size and viii) gross
cultivated area.

I) Hired labor

Hired labor represents the number of laborer’s employed in the cultivation of coffee in an
agricultural season. The wages paid to the hired laborer’s include payments made in cash at the
prevailing market price.

ii) Family labor

The value of family labor is calculated at the same rate as hired labor at the prevailing market price
during the season. In considering the family labor contributing to cultivation of coffee, only those
members who actively participated were taken into account.

iii) Total income includes net income obtained from coffee cultivation plus net income accrued
from the cultivation of other agricultural operations and the income derived from other occupations
by the members of the planters’ family during the specific period.

iv) Planting material (Seeds/Seedlings)

The cost of seed was arrived at by calculating the quantity of seed in kg. purchased by the planter
for cultivation, multiplied by the price of seed per kg. at the prevailing market price. The seed may
be their own, from coffee board or from other planters.

v) Inorganic Fertilizer

The coffee planters used inorganic fertilizers such as urea, potash and others. The value of
inorganic fertilizer was estimated by multiplying the price per kg. of each type of inorganic
fertilizer by the respective quantities used. The price per kg. of each inorganic fertilizer was
calculated by dividing the total quantity by its price.

vi) small farmers and large farmers

The term small farmers refer to farmers whose cultivated area is less than 10 acres. The term large
farmers refer to farmers whose cultivated area is 10 and above acres. The above classification of
small and large farmers was obtained from the classification given by the Coffee Board of India.

vii) Farm size

Farm size refers to the actual amount of land cultivated during the reference period. It includes
small and large land holdings. The small holdings range between 0 and 10 acres and 10 and above
come under the category of large holdings.

viii) Gross cultivated area

It refers to the sum of total area cultivated and the area sown more than once.

Thus, the review of literature made by the researcher helped him to have the required knowledge
for the study of cultivation of coffee. The methodology adopted in the present study proved to be
suitable with reference to the locus and the type of research undertaken.
COMMUNITY PROFILE
Coffee production, cultivation of coffee plants, usually done in large commercial operations.
The two major species of coffee plants (Coffea arabica and C. canephore; family Rubiaceous) are
tropical evergreen shrubs or small trees of African origin. They are grown for the seeds, or beans,
which are roasted, ground, and sold for brewing coffee. This article treats the cultivation of coffee
plants and the harvesting and processing of the beans. For information on the
beverage, see coffee. See also coffee roasting; history of coffee.

The Arabica species of coffee (C. arabica) is cultivated mostly in Latin America, while
the Robusta variety of C. canephore predominates in Africa. Arabica is considered a milder, more
flavorful and aromatic brew than Robusta, though the latter is a hardier plant and is thus cheaper
to produce. It has twice the caffeine content of Arabica and is typically the bean of choice for
inexpensive commercial coffee brands. Both coffee species are also grown in India, Indonesia, and
other Asian countries. There are many varieties, forms, and types of each. The effects
of environment and cultivation further increase this diversity.

Cultivation:
Climatic factors most important for coffee growth are temperature and rainfall. No variety can
withstand a temperature in the vicinity of 32 °F (0 °C). Temperatures between 73 and 82 °F (23
and 28 °C) are the most favorable. Rainfall of 60 to 80 inches (1,500 to 2,000 mm) per year is
required along with a dry period of two to three months for the Arabica. Irrigation is required
where annual rainfall is less than 1 meter (40 inches). The Arabica species is more delicate
and vulnerable to pests than Robusta and requires a cool subtropical climate; it must grow at
higher elevations of 600–2,000 meters (2,000–6,500 feet) and requires a lot of moisture and has
fairly specific shade requirements. The Robusta variety, as its name suggests, is hardier and can
grow at lower altitudes—from sea level to 600 meters.

Plantations are established in cleared forestland or modified forests. The young coffee plants are
spaced in rows so that the density varies between 1,200 and 1,800 plants per hectare (500 and 750
plants per acre). Seedlings or cuttings raised in nurseries are carefully planted at the beginning of
the rainy season; until they start producing fruit three to four years later, their care is limited largely
to the trimming required to give them a strong, balanced framework and to stimulate fruiting.

Shade-grown and sun-grown coffee:

Coffee has traditionally been cultivated in the shade of other trees, which mimics the natural
growing conditions of the plants in a forest understory. Some shade-grown coffee is grown on
plantations that have been planted with shade trees, which allows farmers to space the plants as
desired. On such farms, fruit and timber trees are often utilized, which allows farmers to further
supplement their income. Other growers modify existing forested land and may or may not plant
additional shade trees. Both methods can be considered a form of permaculture (“permanent
agriculture”) or agroforestry, and a diversity of shade-giving trees is usually encouraged to
promote ecological interactions within the system. Some of these interactions directly benefit
coffee production, such as improved nutrient cycling and the provision of habitat for pest-
eating birds and useful pollinators, while others are more broadly beneficial, such as
improved carbon sequestration and water filtration, decreased soil erosion, and the preservation
of biodiversity. Shade-grown coffee is considered more labor-intensive than sun-grown coffee and
produces lower yields. However, it produces a superior flavor in the beans and is frequently sold
at higher prices as a specialty coffee. In the late 20th and early 21st centuries there was renewed
interest in shade-grown coffee as a sustainable farming method, and most organic coffee was
shade-grown. In 2021 about 25 percent of global coffee production was considered shade-grown.

With the Green Revolution of the 1960s and ’70s, the traditional shade-grown method lost much
of its popularity because better results can be obtained without shade or with very light shade if
other practices, such as trimming, weeding, and fertilization, are followed. Yields as high as 2,300
to 3,400 kg per hectare (2,000 to 3,000 pounds per acre) can be grown, compared with 500 to 1,000
kg per hectare (450 to 900 pounds per acre) by traditional methods. To achieve such productivity,
many coffee plantations were converted to this “sun-grown” methodology, causing
the deforestation of large areas of Central America and other coffee-growing regions. Grown as
monocultures, sun-grown coffee plants are more vulnerable to disease and thus require greater
pesticide inputs than shade-grown coffee. Robusta coffee is better adapted as a sun-grown coffee
plant than Arabica.

Diseases:

Among the diseases of the coffee plant are leaf rust, caused by the fungus Hemiplegia vastatin,
which does considerable damage in the plantations of Arabica, and coffee berry disease, caused
by the fungus Colletotrichum caffeine, which also attacks the Arabica. Robusta appears to be
resistant, or only slightly susceptible, to these scourges. Among the numerous parasites that attack
the coffee plant is the berry borer (Stephanotises hanjie), which damages the seeds of both Arabica
and Robusta.
DATA PRESENTATION
AND ANALYSIS
DATA PRESENTATION AND ANALYSIS
This chapter is devoted to an examination of the cost and returns earned from a cultivation of
coffee in India. Further, it discusses the characteristics of sample coffee growers. For a better
exposition, the present chapter has been divided into three sections namely

(I) Characteristics of coffee growers.

(ii) Cost of cultivation of coffee and

(iii) Comparison of cost and returns.

CHARACTERISTIC OF COFFEE GROWERS

This section attempts to discuss the characteristics regarding age, education, sexism, religion-wise,
community-wise, family size, members engaged in cultivation, size of operational holdings and
experience of the selected coffee growers.

Age-wise Classification

Age is an advised characteristic in the life cycle of human beings. Age plays the important role in
determining the needs of the individuals and their life. Hence, knowledge about age is essential to
arrive at meaningful conclusion in this type of studies. The classification of age of the coffee
growers is given in
reveals in Arabica variety of coffee, 76.00 per cent of the growers are in the age group of 30 to 50
years. The age group of 40-50 years was relatively higher in the case of large growers 23 (44.23
per cent) while it was only 21 (21.43 per cent) in the case of small growers to their respective
totals. The growers below 30 years constitute only 9 (6.00 per cent) to the overall. The above 50
years form 27 (18.00 per cent) only.

In the case of Robusta variety of coffee, the growers below 30 years constitute only 16 (10.67 per
cent) to the overall. Those above 50 years form 14 (9.33 per cent) only. The respondents between
the age group 30 to 50 years constitute 80.00 per cent. The age group of 30-40 years was relatively
higher in the case of small growers 53 (50.96 per cent) while it was only 19 (41.30 per cent) in the
case of large growers.

Comparing these two varieties, it is found that the growers between age group of 30 to 50 years
were found high in Robusta variety (80.00 per cent) while it was 76.00 per cent in the case of
Arabica variety.
shows that in Arabica variety of coffee 109 (72.67 per cent) of the growers in the study area had
only school education, followed by those with college level education 21 (14.00 per cent). The
illiterates form 17 (11.33 per cent) to the total. The school level education percentage was higher
among small growers 74 (75.51 per cent) than among large growers 35 (67.31 per cent), while in
the case of college level education, the small growers 13 (13.27 per cent) was considered to be low
than the large growers 8 (15.38 per cent).

In Robusta variety of coffee, growers having the college level education form 25 (16.67 per cent)
to the total. It was found that 99 (66.00 per cent) of the growers in the study area had only school
education, followed by illiterates 22 (14.67 per cent). The school level education percentage was
higher among 70 (67.13 per cent) than among large growers 29 (63.04 per cent) respectively.

Arabica variety of coffee was found to be high in school level educated growers 109 (72.67 per
cent) when compared with Robusta variety of coffee 99 (66.00 per cent). And illiterates are high
in Robusta variety of coffee 13 (28.26 per cent) when compared with Arabica variety of coffee.

Sex-wise Classification

Sex plays a dominant role in the life of the human being, especially in determining the status and
performing certain roles and for even achieving certain position. Various factors such as values,
tradition and culture play on integral role with these characteristics in determining the features.
The sex-wise classification of coffee growers is presented
reveals that out of 150 Arabica variety of coffee grower majority of 122 (80.00 per cent) of them
are male in both small and large growers and resent of 28 (18.67 per cent) of coffee growers are
female in both large growers and small growers respectively.

Whereas in the case of Robusta variety of coffee growers out of 150 grower majority of 119 (79.33
per cent) of them are male and remaining 31 (20.67 per cent) of them are female in both small and
large growers respectively.

Thus, it may be concluded that majority of the coffee growers are male in both Arabica variety of
coffee and Robusta variety of coffee in the study area.

Religion

Religion is one of the important determinants of identification of people in India. Though

sometimes it causes some internal disturbances, the essence of every religion is love and they
propagate social harmony.

RELIGION-WISE CLASSIFICATION OF COFFEE GROWERS

shows that out of 150 coffee grower majority of 120 (80.00 per cent) of the growers are Hindus in
the case of Arabica variety of coffee in both small and large growers followed by 19 (12.67 per
cent) and 11 (7.33 per cent) of them are Christians and Muslims respectively.

Whereas in the case of Robusta variety of coffee growers out of 150 grower majority of 117 (78.00
per cent) are Hindus in both small and large growers followed by 22 (14.67 per cent) and 11 (7.33
per cent) of the growers are Christians and Muslims respectively.

Thus, it may be concluded that majority of the coffee growers are Hindus in both Arabica and
Robusta variety of coffee in the study area.

Caste-wise Classification of the Coffee Growers

It is observed from Table 5.5 that in Arabica variety of coffee out of 150 coffee grower majority
of 64 (42.67 per cent) of the respondents are belong to MBC (Most Backward Class) community
in both small and large growers followed by 45 (20.00 per cent) and 30 (20.00 per cent) and 11
(7.33 per cent) of them are belong to BC (Backward Class) community, FC (Forward Class)
community and SC/ST (Scheduled Caste and Scheduled Tribe) community in both large and small
growers.

Whereas in the case of Robusta variety of coffee growers out of 150 coffee grower majority of 61
(40.67 per cent) of the respondents belong to MBC (Most Backward Class) in both small and large
growers followed by 45 (30.00 per cent) 33 (22.00 per cent) and 11 (7.33 per cent) of them belong
to FC (Forward Class) BC (Backward class) and SC/ST (Scheduled Caste or Scheduled Tribe)
respectively.

Classification of the Family Size

Classification of family size of the coffee growers is given in table 5.6.

From Table 5.6 in the Arabica variety of coffee it is clear that 123 (82.00 per cent) of the coffee
growers had a family size of more than four members while only 4 (2.67 per cent) of the coffee
growers had a family size of more than 8. The major dominant family size in the case of large
grower group was 4-6 which constituted 34 (65.38 per cent) to the total. In the small growers it
was 4-6 members which constituted 71 (72.45 per cent) to the total.

In Robusta variety of Coffee, the major dominant family size in the case of large growers, group
was 4-6 which constituted 28 (60.87 per cent) to the total. In case of small growers, it was 4-6
members which constituted 67 (64.42 per cent) to the total. It is clear that 35 (23.33 per cent) of
the coffee growers had a family size less than 4. While only 2 (1.34 per cent) of the coffee growers
had a family size of more than 8.

When comparing these two varieties, it is found high in the Arabica variety of the coffee growers
with a family size of 4-6 it is 105 (70.00 per cent) but in the case of Robusta variety of the coffee

growers, 4-6 members constituted 95 (63.33 per cent) to the total. The use of family labor was
more in case of Arabica variety when compared to the Robusta variety.

Family Members Engaged in Cultivation

The classification of numbers of family members engaged in cultivation is given in Table

Table 5.8 reveals that in Arabica variety, nearly 98 (65.33 per cent) of the operational holding was
below 6 acres and remaining 42 (32.67 per cent) was above 6 acres. Among small growers, the
dominant operational holding was between 4-6 acres (53 (54.08 per cent) while in the large
growers it was 6-8 acres 33 (63.46 per cent) to the total.

In the case of Robusta variety, nearly 104 (69.33 per cent) of the operational holding was below 6
acres. The rest of 46 (30.67 per cent) was above 6 acres. Among small growers, the dominant
operational holding was between 2-4 acres 57 (54.81 per cent) while in the large growers, it was
6-8 acres 29 (63.04 per cent).

Comparing there two varieties, Arabica variety is low in operational holdings below 8 acres 131
(87.33 per cent) while Robusta variety is high in operational holding below 8 acres 133 (88.67 per
cent) respectively.
Planting Experience of Coffee Growers

It is found from Table 5.9 that in Arabica variety of coffee 40 (26.67 per cent) 35 (23.33 per cent)
of the growers had the experience of 5-10 years and 10-15 years respectively. However, 22 (42.31
per cent) and 3 (5.77 per cent) of growers had the experience of 15 and above years and less than
5 years respectively.

Comparatively, Robusta variety has 66 (44.00 per cent) of growers with experience of 10-15 years,
whereas in Arabica 66 (44.00 per cent) of growers with experience of between 10-15 years. In
Arabica variety only 35 (23.33 per cent) of growers had experience between 10-15 years

COST OF CULTIVATION OF COFFEE

In the cultivation of coffee, various costs are involved such as land preparation, hiring of
equipment, purchase of seeds, preparation of nursery, field planting (three stages), preparation of
stakes and other compulsory expenses in both Arabica variety and Robusta variety of coffee.
Preparatory Cost
In any business, to start with, initially certain cost must be borne by the producer before the actual
commencement of the business or production. Similarly, in coffee production there are certain
costs such as jungle clearing, preparing the land, and similar other costs. The following Table gives
in detail the preparatory costs of coffee plantations in both Arabica variety and Robusta variety of
coffee.

AVERAGE PREPARATORY COST OF ARABIA VARIETY OF COFFEE CULTIVATION

The above Table 5.10 reveals that Rs. 3962.52 (46.52 per cent) is expected to spend on jungle
clearing per acre and Rs. 2978.70 (34.97 per cent) per acre to be spent for levelling and fencing
in Arabica variety of coffee cultivation in both small and large growers. To meet the
miscellaneous expenses Rs. 1576.64 (18.51 per cent) is required. In total Rs. 8517.86 is needed
in order to prepare an acre of land for the cultivation of coffee in Karnataka state.
 FINDINGS
AND
CONCLUSIONS
Findings
Growth and stability of production, consumption, and Export were discussed with computing
mean, co-efficient of variation, semi-log trend and semi-log quadratic equations.

The average area of cultivation of Robusta coffee variety was found high than Arabica. But the
stability over a period of area under cultivation was found in Arabica than Robusta as per the
values of co-efficient of variation.

Regarding the nature of growth of area under coffee variety, constant rate of growth was observed
in Arabica and decelerating growth was found in area under Arabica and overall. The growth rates
are 3.3 percent, (-) 5.04 percent and (-4.26 percent respectively.

Statewide analysis revealed that Karnataka stood first in area under coffee followed by Kerala and
Tamil Nadu. But a less stability over a period in area under coffee was found in Karnataka followed
by Kerala.

Decelerating growth was observed in almost all the states under study.

Regarding state-wise production the highest production was observed in Karnataka followed by
Kerala. The constant rate of growth was found in production of coffee in Karnataka, Kerala and
Tamil Nadu.

In the case of variety-wise production, average production of Robusta was found higher than in
Arabica. But the highest fluctuation in production was observed in Robusta than Arabica.

The variety wise analysis of growth rate revealed that the constant rate of growth was found in
both varieties during the period under study.

Regarding the yield hectare of coffee, yield was found high in the case of Robusta than Arabica.
But high fluctuation in yield per hectare was observed in Robusta as per coefficient of variation.

The highest average export value was found in the case of Robusta than Arabica. But fluctuation
in export was found high in Robusta than Arabica. A constant rate of growth was found in almost
all the variations of coffee.
Regarding domestic consumption of coffee, the highest average sale of plantation coffee was found
than Arabica and Robusta. A constant growth rate was domestic consumption of coffee except
Robusta. Increasing growth rate was observed in consumption of Robusta variety.

Regarding domestic consumption of coffee, the highest average sale of plantation coffee was found
than Arabica and Robusta. A constant growth rate was domestic consumption of coffee except
Robusta. Increasing growth rate was observed in consumption of Robusta variety.

A less fluctuation was found in production of coffee in the global level compared to India.

A less fluctuation was found in production of coffee in the global level compared to India.

In Chapter V, cost and returns of coffee cultivation were discussed.

Regarding characteristics of coffee growers, Majority of the growers belong to the age group of
30- 40 years in both varieties. More than 65 percent are having school level education followed by
college level education. Female coffee growers were found nearly 21 per cent in both varieties.
Majority of their (78 to 80 percent) belong to Hindu religion. MBC was found high (40 to 43
percent) followed by toward community (FC).

Family size was observed 4 to 6 members in the majority of the respondents followed by less than
4. Regarding the family members engaged in cultivation, 2 – 4 members participated coffee
cultivation in Majority of the growers. More than 65 percent of coffee growers are having the
experience more than 10 years in the field of coffee cultivation in both varieties.

The average preparatory cost was found high in the case of large growers than small in both
varieties. Variety wise analysis showed that the average preparatory cost was high for Robusta
than Arabica as per cent in Table 5.10 and 5.11.

The average cost of Farm implement was found high in the case of small growers in both varieties.
Comparing two varieties, high cost was found in Arabia than Robusta variety.

The average cost spent for preparation of nursery was found high in the case of Robusta than
Arabica. Regarding Farm size wise, a high cost was recorded for large growers than small growers.
It is revealed from the analysis that the average cost of field planting was found high for large farm
growers than small farms in both varieties. Variety wise analysis showed that there is no much of
differences in the cost between Arabica and Robusta varieties.

Regarding the second stage of cultivation, the cost of field planting was found high in the case of
Arabica than Robusta.

In the third stage, the average cost of field planting there was not much difference between two
varieties.

In the case of harvesting and processing cost, more or less similar cost was found in two varieties.
But a high cost was observed in the case of large farm growers than small farms in both varieties.

The average overall cost of maintenance and intensive cultivation was found high in the case of
Robusta than Arabica variety as per results

Chapter VI discusses the determinants of yield, yield gap and yield constraints.

A Cobb-Douglas type of multiple regression model was fitted to identify the major determinants
of yield of small and large grower groups growing Arabica and Robusta of coffee. The five
independent varieties chosen to explain the variations in the yield of coffee were (I) human labor
(ii) bullock labor (iii) fertilizer (iv) pesticides and (v) Capital flows.

In the case of small and large growers growing variety of coffee, all the five independent variables
jointly explained about 79 to 81 per cent of the variations in the yield of coffee. Among the
significant variables, human labor had a greater influence on the determination of yield in the case
of small growers, it was followed by fertilizer. The fitted regression model emerged highly
significant.

In the case of large grower, the impact of capital flows on yield of coffee was found to be higher
and it was followed by the variable human labor. The fitted regression model was statistically
significant at five per cent level. In overall case, capital flows were found to be the most influential
input on yield determinations of high yielding variety of coffee.

In order to examine whether structural difference existed between small and large growers growing
Arabia variety, Chow’s Test was applied. The results revealed that there existed structural
difference between the two groups of growers. Further, it is observed that there is a neutral
technical change between the two grower groups. At slope level, variable fertilizer was responsible
for the difference in their yield. Thus, it maybe concluded that the use of fertilizers differentiated
in yield of small and large growers and growing Arabica variety of coffee in the study area.

The regression analysis for Robusta variety revealed that the independent variables caused about
81 to 82 per cent of the variations in the yield per acre. The variables, human labor, fertilizer and
capital flows were significantly related to yield for both grower groups. Fertilizer and capital flows
were found to be the most influential variables in the determination of yield for small and large
growers respectively. The fitted regression model was statistically significantly at five per cent
level.

The examination of the structural differences between small and large growers revealed that there
existed a structural difference between small and large growers in the study area. The analysis
based on dummy variables revealed the existence of structural difference between two groups at
slope level. At the slope level, input namely capital flows were responsible for the differences in
yield. At the intercept level, the co-efficient of dummy variable was not statistically significant,
indicating that there was a neutral technical change between the two grower groups in the study
area.

The analysis of yield gap revealed the existence of a gap between the potential and actual yield per
acre for both grower groups in each variety. The yield gap was found higher in the case of large
growers than in the case of small growers.

The Garrett’s ranking technique was applied to identify the major constraints to the attainment of
potential yield and it was found that severity of disease and pest attacks and waste shortage were
identified as major constraints for both small and large growers growing Arabica of coffee. In the
case Robusta variety, small growers have reported that the inadequate credit facilities and water
shortage to be the main constraints to maximum yield. Similarly, majority of the large growers
have identified water shortage as a major constraint. Thus, it may be concluded that severity of
diseases, inadequate credit facilities and water shortage were identified was major constraints in
the study area.
Conclusion
Thus, it is concluded from the analysis that small growers are economically more efficient than
large growers irrespective of varieties of coffee growing in the study area. This could be due to the
better supervision and more efficient farm management favored by the smaller size of operational
holdings. This indicated that apart from efficient allocation of inputs, direct supervision and farm
management are crucial determinants of yield of coffee.

Suggestions
It is suggested on the basis of the findings that the extension service officials may improve
technical efficiency by advising the growers on input application at the proper time as
recommended.

The growers in the study area were of the opinion that they could not achieve the maximum yield
due to severity of disease and pest attacks. It is suggested that the growers should be educated
properly to apply the pesticides at the prescribed level and this may be done through the
agricultural department officer attached to the panchayat unions.

Non-availability of credit was the other constraint. It is suggested that financial institutions should
revitalize and revamp the existing facilities in the study area so that the growers could get timely
credit for undertaking improved growing practices.

Such measures shall certainly pave the way for the grower’s greater success.
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