Value Chain Analysis and Socio-Economic Impact of Fair-Trade Certified Araku Coffee
Prof B Sudharkar Reddy
Professor of Economics & Director, ICSSR – SRC, Osmania University, Hyderabad
Dr V Mallikarjuna Naik
ICSSR Post Doctor Fellow (PDF), CESS, Hyderabad
Download PDF
http://doi.org/10.37648/ijps.v19i01.019
Abstract
India’s coffee export performance over the last five years has shown significant volatility. Export volumes were recorded at 393,000 tons in 2021, peaking at 400,000 tons in 2022, then dropping to 377,000 tons in 2023, before recovering to 388,000 tons in 2024. While data for 2020 is unavailable, the overall trend reflects a dynamic market shaped by changing global demand and the varied performance of Robusta and Arabica varieties. Notably, the 2023 decline largely stemmed from a 15% decrease in Robusta shipments, while Arabica and instant coffee exports experienced slight gains. In 2024, the total export volume remained below the 2022 peak, yet the value of exports reached a record high, driven by surging international Robusta prices and stronger consumer demand. These fluctuations underscore the complexity of India’s coffee export market, influenced by climatic conditions, varietal performance, and global pricing dynamics. In this broader national context, Araku Coffee, grown in the remote Eastern Ghats of Andhra Pradesh, has emerged as a notable success story in specialty coffee production. Cultivated by indigenous tribal communities, Araku Coffee is renowned for its superior Arabica beans and ethical, sustainable production methods. The region’s high elevation, organic soil, and favourable agro-climatic conditions create an optimal environment for cultivating high-quality coffee. Transitioning from traditional slash-and-burn (Podu) agriculture to coffee farming, tribal farmers have adopted sustainable practices supported by NGOs and government bodies, aiming to improve socio-economic conditions.
Keywords:
Araku Coffee; Fair-Trade Certification; Value Chain Analysis; Socio-Economic Impact; Tribal Farmers
References
- Araku Coffee Global. (2024). Brand impact review. https://arakucoffee.com
- Araku Originals. (2023). Impact of ethical trading. https://arakucoffee.com
- Business Standard. (2024). Robusta prices boost Indian coffee exports. https://www.business-standard.com
- Coffee Board of India. (2020–2024). Annual coffee export reports. https://coffeeboard.gov.in 110
- Coffee Board of India. (2024). Coffee statistics and export data. https://coffeeboard.gov.in/coffeestatistics.html 1
- Comunicaffe International. (2023). India’s Arabica and Robusta trends. https://www.comunicaffe.com
- Economic Times. (2023). Coffee exports and climate effects. https://economictimes.indiatimes.com
- Equal Exchange. (2023). Partnership models in coffee supply chains. https://equalexchange.coop
- ETRetail. (2023). Growth of Indian coffee in global markets. https://retail.economictimes.indiatimes.com
- European Coffee Federation. (2023). Consumer trends in ethical coffee. https://www.ecf-coffee.org 15
- Fair Trade Advocacy Office. (2023). Benefits of Fairtrade in Asia. https://www.fairtrade-advocacy.org
- Fairtrade International. (2023). Fairtrade coffee: Impact report. https://www.fairtrade.net 211
- FAO. (2023). Agroforestry in the Eastern Ghats. Food and Agriculture Organization. https://www.fao.org
- Forest Survey of India. (2022). State of forests report. https://fsi.nic.in
- Hindu Business Line. (2023). Coffee exports surge. https://www.thehindubusinessline.com
- IBEF. (2024). India’s coffee industry overview. India Brand Equity Foundation. https://www.ibef.org
- India Coffee Trust. (2022). Specialty coffee movement. https://indiacoffeetrust.org
- International Coffee Organization. (2023). World coffee report. https://www.ico.org
- International Trade Centre. (2022). Export potential in specialty coffee markets. https://www.intracen.org
- Lund University. (2008). Value chain of Araku coffee [Master’s thesis]. https://lup.lub.lu.se
- Ministry of Tribal Affairs, Government of India. (2021). Annual report on tribal development. https://tribal.nic.in
- NABARD. (2021). Tribal development fund reports. National Bank for Agriculture and Rural Development. https://www.nabard.org
- Naandi Foundation. (2022). Araku coffee project evaluation report. https://naandi.org 3
- National Sample Survey Office (NSSO). (2022). Agricultural households in India. https://mospi.nic.in
- ResearchGate. (2023). Organic coffee cultivation and certification. https://www.researchgate.net
- SAMTFMACS. (2023). Cooperative performance report. Small and Marginal Tribal Farmers Mutually Aided Cooperative Society.
- Times of India. (2024). Specialty coffee in India. https://timesofindia.indiatimes.com
- United Nations Development Programme. (2022). Sustainable coffee value chains. https://www.undp.org
- World Bank. (2022). Enabling the business of agriculture in India. https://www.worldbank.org
- XLIII Coffee. (2022). Araku: India’s premium brew. https://www.xliii.com
