Three decades after deregulation, coffee farmers of Wayanad face market, labour strain
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Kalpetta: It has been only three decades since coffee farmers were permitted to sell their produce directly in the open market. Until then, they were under the strict regulation of the Coffee Board, established in 1942.
Until 1995, farmers were not allowed to move coffee outside their homes except for production and processing. To transport coffee to depots under the Coffee Board’s control, they had to carry an application form in the prescribed format issued by the Central Excise office, complete with details such as address, vehicle registration number, weight, route of transportation and date.
Processing and grinding coffee beans for domestic consumption outside the household was also prohibited. Violations attracted fines imposed by excise officials. For nearly five decades, coffee was processed and ground only within households.
Ground coffee supplied to Coffee Board depots fetched negligible prices. A kilogram of beans earned less than ₹30, including bonuses distributed in multiple instalments throughout the year. Farmers were also kept in the dark about the auction prices at which the Coffee Board sold their coffee.
Entry into the open market
When restrictions were lifted, prices rose sharply, from less than ₹30 to around ₹100 per kilogram. Traders dealing in forest produce and coffee began procuring beans and coffee with shell. During the 1996 harvest season, prices peaked at ₹125 per kilogram.
Since then, coffee prices have fluctuated: ₹15,600 (per quintal) in 2013; ₹18,300 in 2015; ₹12,800 in 2019 and ₹11,700 in 2020. Prices touched an all-time high of ₹50,000 per quintal for a few days last year, before dropping to the current ₹37,200 per quintal.
Labour shortage delays harvest
Coffee harvesting is now in its final stages in the district. However, farmers face crop losses due to a shortage of workers. They have long demanded that the employment guarantee programme be suspended during the harvest season, or that coffee harvesting be included under the programme.
In earlier years, labourers from Karnataka used to arrive in large numbers to assist with harvesting. This practice stopped once the employment guarantee programme became widespread there. Due to the shortage, many farmers are leasing out their plantations.
Coffee farming in Wayanad
Wayanad ranks second in India for coffee production and first in Kerala. The district contributes 18% of India’s total coffee output. Around 80% of Kerala’s coffee comes from Wayanad. Coffee farming spans 68,000 hectares in the district. There are 60,000 farmers, of whom 82% are small-scale cultivators. Predominantly, Robusta coffee is grown. Nearly 70,000 farmers depend on coffee revenue for their livelihood.
Reliance on the open market
The government has not introduced any favourable package for coffee farmers. In the 2022 budget, it was announced that coffee would be procured at ₹10 above the market price. But, this was restricted to only 4% of total production. At the time, this amounted to just 455 tonnes out of 1.05 lakh tonnes. However, even this limited procurement was never implemented.