The Hindu Business Line : Cocoa prices stay steady

Cocoa has reached a stable position following unprecedented growth of confectionery industries in the country. About 15 agencies procuring cocoa have kept the prices sustainable.

The processing capacity of the factories owned by the industries is about 30,000 tonnes of cocoa every year. For the last few years, India could produce only one-third of the total requirement. While around 30,000 tonnes per annum is needed, the country produces only 10,000 tonnes. Last year, imports were 11,000 tonnes. A majority of the import is from Ivory Coast.Both the domestic and international cocoa markets are stable, with only a marginal gap in the prices.

Though a good number of farmers abandoned cocoa cultivation in Kerala, following a big price drop a few years ago, the State is still in the forefront in area and production.

Kerala is now producing 5,800 tonnes from an area of 10,220 hectares. Cocoa and Cashew Directorate offers assistance, including subsidy for the expansion of cocoa cultivation but the area in Kerala remains the same.

In Andhra Pradesh, cocoa cultivation is expanding very fast according to reports. The dry beans fetches Rs 70-80 per kg. The price at Kattappana for wet beans is only Rs 20 per kg. But according to Campco sources, the average price of wet beans has gone up to Rs 25-28 a kg due to the off-season and shortage of material.