THE COFFEE ENIGMA OF KODAGU DISTRICT . ARE ROUGH TIMES OVER?

CC Staff
Coffee Shrub

By: B.G.ANANTHA SHAYANA / Shakthi Daily

The average planter thinks that the rough times are over. But the experts and think tanks may not agree to it. Yet, the battered wrinkles on the faces of the planters due to hard struggle since about a decade seems to be fading with the price rice the 2005 has brought. It indeed is a happy new year for the coffee industry, which hopes to bounce back from the fall.

The roads and valleys of Kodagu now shudder with the screeching sound of wheels, which was missing for quite sometime. There is an unusual boom and a buying spree of vehicles. The tiny district has registered more than seven hundred two wheelers just in sixty days. More than four hundred four wheelers like Innova, Santro, Wagoner,Ellantra….you name them, have hit the roads in two months time, says the Road Transport Officer. “ This tiny district looks like a mini automobile show room!” exclaimed a sales officer, recently.

The planters who have tread a very rough road for about ten years are now returning to their ‘Royal’ style of living. But the market experts say that the days may not be the same and planters should be careful in their spending and fixing their priorities.

According to senior bankers, there loan accounts show no decline in figure. According to them the total outstanding as on date is rupees 625 crores? While this pertains to the total agriculture sector, Coffee alone has an outstanding of 563 crores of rupees.

Yet there is no sign of repayment, even after the coffee prices shot up. “ We see new cars on roads, but no one comes here to clear the loan” is a sarcastic comment of a bank manager. The bankers state that the planters did not clear a single instalment even after the short term loan of one year was converted to fifteen years.

The analysts opine that the planters have borrowed money from private lenders and friends too. Hence, they might clear the private borrowings first, friends loan next, rejuvenation next and the banks loan afterwards.

The coffee consultant Mr.P.K.Deavaiah shares his knowledge of coffee and its history.

Coffee, made its entry to India in 1650 in Bababudan hills, through an Arabian pilgrimist and soon found the Natural hilly regions of Kodagu as providing the best infrastructure for the plantations. The valorous British youngsters fought wild animals, Plague and Malaria to enter the impregnable forests to plant Coffee and start what came to be called as Coffee Estates. It was not a mediocre task and many adventurous youngsters lost their lives, as helpless preys either to the feary wild Elephants and Tigers or became victims of Plague and Malaria. But yet, the daring British did not relent and reached the most inaccessible areas on horse backs, lived there in tents with labourers and planted Coffee.This should have been a real test of their commitment and vivacity. The passion of the British to locate the Estate Bungalows on the top-most part of the estates are still manifest in Kodagu, specially in the European owned estates of the yore.

If Kodagu is known today all over the world as the place where best odoriferous Coffee is grown, the entire credit should go to those young and bold planters. The first organised Coffee estate was opened in the year 1854 by one John Fowler near Madikeri. Later Mr Fennel opened the Wooligoly estate near Suntikoppa, which still exists. In 1855, M/s Mann and stuwart, a British company opened an estate in Sampaje. In 1857 Mcpherson opened the Balecadoo estate near Suntikoppa. All these were only Arabica plantations ( Old chicks). At the same time, Sakamma a very enterprising and intrepid lady from Somwarpet, started Coffee trading in a big way. She created ripples among the coffee traders by her enterpraunship and dynamism. In 1870, there were 134 estates owned by Britishers in the district. GlenCoorg with 3012 acres, Coorg Coffee Co with 2095 acres, Karnataka Coffee Co with 3000 acres of Coffee were the larger ones.Gradually by 1883, there were 19,980 acres of land under Coffee, mostly owned by the Britishers growing almost 6500 tonnes of Coffee. In 1884 a quantity of 4234 tonnes of Coffee was exported earning a revenue of Rs 27.10 lakhs. Sri Chennabasappa of Somwarpet is credited with opening of the first Coffee estate among Indians. The Coffee Industry gradually caught the imagination of the native people and gradually, the Coffee plantations apropos steadily developed in Kodagu.

However, a proper regulation was provided to the Coffee industry in 1942, when the British Government enforced the Coffee Marketing and Development Act. Mr Ivor Bull, a British planter took the initiative to group all the different estates owned by the Britishers in 1943 and formed a Private Ltd company named “ Consolidated Coffee Ltd”. These developments culminated in the formation of the Coffee Board in 1955 by the Government of India. A well balanced representation from the planters and traders in the Coffee Board gave a fillip and discipline to the Industry. Under the overall supervision and control of the Coffee Board, the industry prospered and Coffee planters gained a status of high esteem in the society.

Soon many Kodava planters took up Coffee in South Kodagu and by 1990, the Industry was in full bloom in the District. The Coffee Act which was formulated brought the industry under monopolistic pooling system and all the coffee grown had to be compulsorily surrendered to the Board. The Coffee Board with dedicated officers managed the coffee trading by monitoring the International scenario very meticulously and paid the planters the payment on their produce in instalments. The strict adherence to the Quality standards increased the premiums for the Indian coffee. The market rates were fairly adequate to balance the cost of production and the Coffee planter was a contended man. The old generation planters revered the coffee plantations and followed the painstaking cultural habits established by the British planters in manuring, weeding, Pulping and in Drying. ( Whatsoever be the compulsion, the Coffee planter would never miss the early morning Check-roll, a time tested ritual, where the attendance of the workers are taken and the day’s work allotment is done to them). The Coffee planter, thus became a status symbol and was looked upon with adoration and respect by the society.

The Coffee Planters, thanks to the interaction with the British planters had noticed from close quarters their lavish life style also. The Butler, Mali, Driver, House Maids, Writers ( Office clerk) whom the British planters had cultivated in their Bungalows were continued by them too. Cars and jeeps became an integral part of their lives. The Club culture, which the British had followed was promtly continued with ostentation, with wine and good food abound.

When all these were happening, the Coffee Board, unfortunately became a regular bureaucratic hegemony lacking buisness acumen, like any other Government department and patently rendered redundant, as the rapport built with the planters over the years was lost. Majority of planters concluded that the Coffee Board has become superfluous and hence demanded free trade. For the first time, the coffee planters mainly the smaller ones, came to the street and demanded abandoning of the Coffee marketing system. Finally the Government yielded and coffee became a free commodity. This was in 1993. The following year, a major Frost destroyed the Brazilain coffee and the fear psychosis about the possible abnormal reduction in the supply, resulted in traders and roasters covering their requirements at abnormal prices. The planters misread the situation and attributed the high rates to the exit of the coffee Board.

The Coffee rates touched all time high and even a small planter suddenly found surplus money at his disposal. The immediate result was the promotion in their life style, which was already above par and distinct from the rest of the society. The mad rush to own cars in the Mid-nineties raised the eyebrow of even the Managing Director of Maruthi company. The marriages became extravagant affairs, with added pomp and grandeur. People vied to get their daughters married to Coffee planters and the Plantation Boy was in demand.

While reveling at this bonanza, the majority of the planters did not think of saving for the rainy day. They had the misplaced notion that this situation of coffee has become the order of the day and shall continue for ever. They did not read the writing on the wall and paid for the same heavily in later years. But yet, the Bonhomie contnued.

At this point, the generosity of the coffee planter has to be recorded and appreciated. They wanted to share the prosperity with their workers and others involved in the plantation. They increased the daily wages to very high levels without thinking of the consequences. With the result, the cost of production in the estates went up, the effect of which was felt much later.

But, Alas, the celebration was short lived. As per the established theory of economics, What goes up had to come down and it did. Much against the hope of the planting community, the rates started plummeting in the next year and soon hit all time low levels. The planters were caught on wrong foot and did not have the Armory or the strategy to counter the reprehensible situation. They were not able to balance their payments due to the higher cost of production and could not service the Bank loan. The following Ten years or so, the pathetic situation continued and the coffee planter for the first time hit the bottom. Overnight, the coffee grower became untouchable. The Banks who vied with each others to pamper the planters and considered it a privilege to serve them , avoided them. Instead, they pressurized them to repay the overdues. The Planter was a helpless man and at this point of time, the absence of a strong Political lobby to impress on the government was very evident. In the meanwhile, the Tea planters, who had a better and stronger lobby were successful in getting a substantial subsidy from the government. The coffee industry secured the proverbial step motherly treatment from those in power and there were none to take up their just cause to its logical end. After suffering bad rates and poor crops for almost Eight years in a row, the planter looked to the Government for the deserving assistance. The bigwigs of the Government visited the district and saw for themselves the forlorn situation and returned with firm assurances. But alas, the assurances remained only on paper. Neither the State Government, Nor the central Government did anything to help the grower to tide over the crisis. The horrid situation was compounded by the borer attack on plants and this resulted in acres of coffee estates getting destroyed. Many sold their estates, unable to cope up. Those who survived, cut down the manure inputs to balance the budget. This had a negative effect on the quality for which the Indian coffee was known. In short, everything and everybody went against the interests of the coffee planter and he was an isolated man in dire straits. This situation had a devastating effect on their social lives also. The lavish marriages, posh cars, education of their wards in public schools, were all given a second look and gradually sanity prevailed on the community. But, yet, this was not sufficient to balance the incorrigible damage caused to them over the last 10 years.

The area and production of Coffee in 2004/05 is as under,

Area in Acres Production in tonnes
Arabica Robusta Total Arabica Robusta Total
India 165892 181103 346995 121050 179550 300600
Karnataka 110260 91515 201775 99430 109240 208670: 69%
Kodagu 26100 56250 82350 28800 73800 102600: 34%

This situation lasted almost 8 years, without any tangible support from the Government, which was revelling in the new found IT boom. The situation was explosive and the entire planting community was in doldrums. A position had been reached where, Unless the Government come to their rescue, the planters would face serious tribulations and the plantations suffer the same fate, which resulted in its annihilation in early nineteenth century. A distant cry was again heard from a section of them for the Coffee Board to be brought back to save the Industry. The cycle of changes has come about so soon.

However, His almighty, the great leveller seems to have again come to their rescue in 2005, as the rates are slowly going up. God willing, If this is sustained for a few more years, the planters may be able to float round and eventually come out of the messy debt trap. But more than the invisible God, it’s the visible Government that holds the Key to the vexed problem. A slight back up from it can catapult the Industry back to its old glory. But again, the Coffee rates are most unpredictable as they depend upon many factors like the Crop quantum, Beverage brand equity, Political stability of producer nations, Money diversion into the trade by speculators and the Fiscal policies of the Governments. When this is being written, the rates are again in the downward trend and if this persists, we are back to hole one. The Government should evolve a a suitable mechanism built into the price structure system, taking all these variables into consideration, so that the commodity can absorb such shocks without any casualty, with long time survival in view.

It has to be borne in mind, that the Coffee estates are the virtual nurturers of Ecology of the region. The multiple giant trees and the copious green plants in an estate, shelter innumerable flora and fauna and any irrational steps to disturb this by allowing it to be destroyed, will have detrimental effects not only on the district, but on the entire state. They can be called as the veritable life supporting Oxygen-Banks. The State Government should view the problem in this light, lest the entire agriculture dominion in the state face forlorn and disastrous results, in the years to come.The simple statement of fact, however preposterous it may sound is, “ If Coffee Estates Survive, the life supporting Ecology Cycle will survive.”. Coffee plantations are nurtured and developed for a lifetime and not for short durations like other crops. They are the veritable storehouse of Mother Nature and this nature friendly edifice cannot be allowed to be dissipated. What the government agencies are doing at enormous cost, in the garb of social forestry is being commendably performed by all the coffee estates from ages, at no cost to the exchequer. And for this, unquestionably, they deserve the helping hand of those in power.

The statement may sound ludicrous and out of context at the moment. But one day, History will unquestionably prove this proclamation right, if things are allowed to be in limbo. So let it serve as an ultimate Call – bell for those who rule the state and determine its destiny – Please Save the Coffee Industry and save the District.

This article was originally published on 10/04/2005.

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