2. There is a significant variation in the age difference in the age group composition of coffee growers across Karnataka.(CC=.156;P=.039).

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1 5.1 Introduction Karnataka is the largest coffee growing state producing 71% of coffee in the Indian coffee industry. Coffee being an export commodity, it contributes a major share to the Indian exchequer. The noteworthy feature of the coffee production in Karnataka is its fine shade grown coffee grown under the environmental friendly condition. Coffee plantation in Karnataka is characterized by predominant 70 percent of small holders holding 5 hectares of land and below. Large number of small farmers in the supply chain represents near perfect competition. On the other hand, relatively few buyers amount to oligopoly market. The International coffee market is exposed to wide price volatility. This has made marketing of coffee increasingly competitive and sophisticated. The price crisis has adversely and seriously affected the incomes of all coffee producers but hit small producers more severely than others due to differences in various economic factors such as production cost and exchange rates. Even though the price realization from coffee during the last two years appears to be good, the margin is very thin. The cost of cultivation of coffee has been increasing on account of high wages and increase in the price of other inputs. There is also clear mismatch between demand and supply of labour during the peak period. Lack of mechanization at the primary production level is a serious constraint and too much dependence on manual labour is a threat in the long run. The coffee industry requires carefully guided strategies and plans to take Indian coffee on to the road of free multilateral trade. It has to be based on principles of environmental sustainability highlighting ecology as the marketing tool. Studies in the direction of India s coffee exports suggests that majority of the importing countries are not loyal except Italy which is the major trade partner. This calls for developing appropriate marketing strategies and also strengthening of the value chain management. The quality of coffee should be improved by adopting good agricultural, processing and manufacturing practices. Value addition throughout the chain at each point like input application, harvesting, drying, pulping, curing, grading and storing will enhance the value of the produce. Therefore, there is a great need for capacity building & education at the farmer level. Since, no comprehensive research has been 238

2 done in the area of the marketing problems of the coffee growers in Karnataka. This study is undertaken to provide insights for the future course of action to be considered by the coffee growers for a profitable and sustainable market. For this purpose the opinions and perceptions of all categories (large, medium, and small) of coffee growers of Karnataka is incorporated. A field survey is conducted to study the marketing problems of coffee growers in Karnataka. Accordingly 763 coffee growers, of which 119 are large coffee growers, 130 are medium coffee growers and 514 are small coffee growers. The survey covers the three coffee producing districts of Karnataka namely; Kodagu, Chickmagalur and Hassan are considered for the survey. 5.2 Study Findings Demographic Findings 1. There is a significant difference in the growers growing Arabica coffee and Robusta coffee. The total sample size of coffee planters is 763 of which 752 (98.6%) have Robusta plantation. This consists of 119(100%) large coffee growers, 128(98.5%) medium coffee growers and 505(98.2%) small coffee growers. It is statistically non significant (CC=.052; P=.351). The sample size of 108 (14.2%) have Arabica plantation. Of which 44 (37%) are large growers, 15(11.5%) are medium coffee growers and 49(9.5%) are small coffee growers. This reveals a statistical significant result (CC=.272; P=.000). The Robusta plantation represents the total sample in large size as it involves less cost of production and easy maintenance than the Arabica plantation (Table 4.1). 2. There is a significant variation in the age difference in the age group composition of coffee growers across Karnataka.(CC=.156;P=.039). There are only small growers in the age group of below 25. The higher number of 275(36%) sample respondents belonged to the age group of Of which majority were small coffee growers 199 (38.7%) followed by 42(32.3%) medium coffee growers and 34(28.6%) large coffee growers. The age group of

3 comprised of 188 (24.6%) of coffee growers consisting of 36 (27.7%) medium coffee growers, 32 (26.9%) large coffee growers and 120(23.3%) small coffee growers. The least percentage of 7.9% of the total sample size belonged to the age group of above 65 of which the larger percentage (14.3%) were the large coffee growers. The majority of the sample respondents from all the three categories of age group represent the age group of This signifies that the majority of the middle aged (46-55years) individuals are engaged in coffee plantation (Table 4.2). 3. There is a significant difference in the plantation experience among the coffee growers in Karnataka. (CC=.166;P=.006). The larger number of 236 (30.95%) total sample respondents have an experience of years of which larger percentage of 36.1% are the large coffee growers. The least number of 38(5%) sample respondents represent the plantation experience of years which is dominated by the large coffee growers with their percentage showing 9.2%. Larger sample respondents 115 (22.4%) and 156(30.4%) of the small coffee growers represent the experience category of below 10 years and years. Among the category of medium coffee growers the larger number of 44 (33.8%) have an experience of years. This signifies that the large coffee growers have more experience than the medium and small growers Table (4.3). 4. There is significant variation in the cultivation of orange, cardamom, areca nut and pepper by the coffee planters. Equal proportion 25.1%, 32.3% and 30.3%.of coffee growers had paddy cultivation (CC=.067; P=.181NS). The major percentage of large growers grew orange, cardamom, areca nut and pepper compared to the medium and small coffee growers. The 13.4% of large growers grew orange in comparison to 1.6% small coffee growers and 3.8% of medium coffee growers (CC=.216; P=.000). The cardamom was grown by 16.8% of the large coffee growers compared to 3.7% of the small coffee growers and 9.2% of the medium coffee growers (CC=.189; P=.000). Areca nut was grown by 24.4% of large coffee growers in comparison with 8.4% of small coffee growers and 16.2% of medium coffee growers (CC=.180; P=.000). The percentage of large coffee growers growing pepper was 92.4% as against the 59.7% of small coffee growers and 16.2% medium coffee growers (CC=.241; P=.000) (Table 4.4). 240

4 5. There is significance in the educational background of different categories of coffee growers in Karnataka.(CC=.415:P=.000). Among the sample size of 763 coffee growers the percentage of illiterates are minimum. There are no illiterates among the large coffee growers category. The 3% illiterates are represented by 4.3% small coffee growers and.8% medium coffee growers. Large numbers of 160(31.1%) small coffee growers are with secondary education and majority of 65.5% of large coffee growers and 51.5% of medium coffee growers are graduates. Post graduate degree is held by 10.9% of large coffee growers as against 3.9% and 5.4% of small and medium coffee growers. Technically qualified large coffee growers are 9.2% followed by 8.5% medium coffee growers and 5.3% small coffee growers. Agriculture graduates comprise of 1.7% of large coffee growers compared to.8% and.2% in the medium and small coffee growers category. None among the medium and small growers are medically qualified. The doctorate degree is held by 1.5% of medium coffee growers and.8% of large coffee growers. The educational status of large coffee growers is higher than the small and medium growers (Table 4.5). 6. There is significance in the domiciliary status of small, medium and large coffee growers in Karnataka.(CC=.177;P=.000) Out of the 763 sample size 746 (97.8%) are locals and 17 (2.2%) are non locals. The majority local comprises of 99.2% of medium coffee land holders followed by 98.8% of small coffee land holders and 91.6% large coffee landholders. Among 17(2.2%) non locals, 10 (8.4%) are large land holders as against 1(.8%) medium coffee grower and 6(1.2%) small coffee growers (Table 4.6). 7. There is significance in exporting of coffee, selling to the curers, consignment and spot sales. Whereas, sample comprises of near equal proportion for phased, retail and auctioning form in sale of coffee. Out of 763 samples only large coffee growers export and sell their coffee to the curers. Of which 6 (5%) export and 9(7.6%) sell it to the curers. The statistical significance represent (CC=.203; P=.000) (CC=.246; P=.000) for exporting and selling to the curers respectively. Consignment form of sale is undertaken by 16% of large coffee growers and 14.6% of medium coffee growers as against 5.8% of small 241

5 coffee growers (CC=.154;P=.000). The spot sale is undertaken by majority of 74.3% of small coffee growers as against 71.4% of large coffee growers and 63.1% of medium coffee growers (CC=.092; P=.038). The sample responses of near equal proportions are found in the case of phased sale, retail sale and auction sale. The phased sale is undertaken by 19.2% of medium coffee growers, 13.4% of small coffee growers and 12.6% of large coffee growers (CC=.064; P=.204). The retail sale is adopted by 5% of large coffee growers, 1.9% of small coffee growers and 1.5% of medium coffee growers (CC=.076; P=.106). The auctioning was done by 4.6% of medium coffee growers, 1, 9 % small coffee growers and.8% of large coffee growers (CC=.078; P=.098) (Table 4.7). 8. There is significance in the membership of coffee growers in coffee board, district planters association, Karnataka planters association, Agricultural technological Organization and in NED Commodities. The sample comprises of near equal proportion for the membership in Co-operative societies and regulated marketing co-operative. The membership of large coffee growers is high in all the organisations, except the Ned Commodities and the co-operatives. The membership of the small, medium and large coffee growers in the coffee board is 3.7%, 1.5% and 7.6% respectively (CC=.090; P=.045). Majority of 23.5% of large coffee growers held the membership in Karnataka planters association compared to 3.1% of medium coffee growers and 2.1% of small coffee growers (CC=.317;P=.000). In the district planters association, the large coffee grower s membership is 41.2% compared to 33.1% medium growers and 13.2% of small growers(cc=.269;p=.000). The 7.6% of large coffee growers had membership in Agricultural technological Organization as against 2.3% medium coffee growers (CC=.213; P=.000). The membership in NED Commodities comprised of.2% small coffee growers, 2.3% medium coffee growers and 1.7% of large coffee growers (CC=.098;P=.025). The percentage of membership in Regulated Marketing Co operative was 2.9%, 3.1%, and.8% of small, medium and large coffee holders (CC=.048; P=.414). The membership in co-operatives was 15.8%, 13.8% and 11.8% of small, medium and large coffee growers respectively (CC=.042; P=.512) (Table 4.8). 242

6 9. There is significance for the Subscription to the Agricultural Magazine by Small, Medium and Large coffee Growers. (CC=.240;P=.000). The higher percentage of 49.6% of large coffee growers subscribe for the agricultural magazines like Indian Coffee and Krishika as against 36.2% of msedium coffee growers and 20.4% of small coffee growers (Table 4.9). 10. There is significance for the production of pulped Coffee among the Small, Medium and Large growers. The sample comprises of equal proportion for the stage of cherry and cured form of coffee. Out of the total sample of 753 coffee growers, the majority of 561(73.5%) sold coffee in the form of cherry. Of which 379 (73.7%) were small coffee growers, 99 (76.2%) medium coffee growers and 83(69.7%) large coffee growers (CC=.042; P=.510). The cured form of coffee was sold by 26.7% small coffee growers, 25.4% medium coffee growers and 16% large coffee growers (CC=.088;P=.051). Very less percentage of 13.6% of coffee growers sold pulped coffee. Out of which the percentage of large coffee growers showed a higher percentage of 47.1% compared to 11.5% medium coffee growers and 6.4% small coffee growers (CC=.389;P=.000). The result show that though pulped/ washed coffee has market advantage; it is undertaken by the least majority of coffee growers compared to cherry and cured form of sale. This signifies that the coffee growers lack of market orientation (Table 4.10). 11. There is significance for the type of coffee farming adopted by small, medium and large coffee growers.(cc=.205;p=.000). Out of 763 sample size, 656(86.2%) coffee growers adopted the regular form of cultivation among which 81.3% are small coffee growers, 93.8% medium coffee growers and 99.2% large coffee growers. The organic coffee cultivation was adopted by 105(13.8%) of which 18.7% are small coffee growers, 6.2% medium coffee growers and 0.8% large coffee growers. The cumbersome and expensive certification process and the lack of marketing channel have hindered the coffee growers from adopting the organic coffee cultivation (Table 4.11). 243

7 12. Of the mode of sale adopted by the small, medium and large growers there is significance only for consignment, whereas for the farm gate sale, open auction and closed auction the responses are in equal proportion. The consignment sale was adopted by 48.7% large coffee growers followed by 23.1% medium coffee growers and 18.5% small coffee growers (CC=.245; P=.000). Among 763 sample size 453(59.4%) growers adopted farm gate sale of which 58% are small coffee growers, 57.7% are medium coffee growers and 67.2% are large coffee growers(cc=.069; P=.164). Open auction form of sale was adopted by 21.6% of the coffee growers. This comprises of 23.2% of small coffee growers, 22.3% of medium coffee growers and 14.3% of large coffee growers (CC=.077; P=.104). Very small percentage of 1.8% coffee growers sell through closed auction which comprises of 1.2% small coffee growers, 3.1% of medium coffee growers and 3.4% of large coffee growers (CC=.072;P=.141) (Table 4.12). 13. There is significance for the use of internet and organisational source for the market information. There is equal proportion of sample distribution for the local market, dealers, journal/newspaper media, SMS and Internet. Only 17% of the respondents use internet as the source for market information, out of which large coffee growers are 37%, 20.8% of medium coffee growers and 11.5% of small coffee growers (CC=.238;P=.000). The small percentage of 2.9% of the sample size of coffee growers use organisational source for market information. Out of which 7.6% are large coffee growers, 2.3% are medium coffee growers and 1.9% are small coffee growers (CC=.120; P=.004). Local market is considered by 11% of the sample size comprising of 15.1% large coffee growers, 13.1% medium coffee growers and 9.5% small coffee growers (CC=.070;P=.152). The 21% of the coffee growers seek market information from dealers of which 25.2% are large growers, 24.6% are medium growers and 19.1% are small growers (CC=.067; P=.178). Among the 26.3% of the sample size using Journal/newspaper and media 30.3% are large growers, 32.3% medium and 23.9% small growers (CC=.080; P=.088). SMS and telephone are used by 5,4% of the sample size comprising of 6.7% of large growers, 6.2% medium growers and 4.9% small growers (CC=.033; P=.656). The result shows that higher percentage of large growers makes 244

8 use of all sources of market information compared to medium and small growers (Table 4.13). 14. There is significance for the timing of sale of produce by the small, medium and large growers.(cc=.275;p=.000). Out of the total sample size of 763 coffee growers the major percentage of 59.4% sells their produce immediately after the harvest. Of which 64.8% are small coffee growers, 57.7% are medium coffee growers and 37.8% are small growers. Larger percentage of 31.1% of large coffee growers sold between January to March followed by 14.6% of medium growers and 8.6% of small growers. It is again the higher percentage of 9.2 of large growers sell their produce after a year followed by 3.1% of small growers and 1.5% of medium growers. The 17.7% of the medium growers sell their produce in the period between June and September followed by 16.7% of small growers and 14.3% large growers. This reveals that the large growers have more holding capacity followed by the medium coffee growers. The small coffee growers have less holding capacity (Table 4.14). 15. There is significance in the yield distribution of coffee among the different sects of growers. (F=66.981; P=.000). The mean value of the yield of coffee per hectare of the large growers is bags (50/kgs) as against bags (50/kgs) and bags (50/kgs) of the medium and small growers respectively. The result of the statistical value reveals high significance (Table 4.15). 16. The sample comprises of near equal proportion of net profit (in Rs.) of different type of growers. (F=2.321; P=.099). The mean profit per bag is rupees , and for large medium and small growers respectively. The result of the statistical value shows non significance (Table 4.16). 245

9 17. There is significance in the mean production of coffee/ per annum by different types of growers. The mean production of the large, medium and small land holders per hectare are bags(50 kg), bags(50 kg), and 39.51bags (50 kg) respectively. The higher mean value is seen in the coffee production by the medium growers. It shows a significant value of F=16.935; P=.000 (Table 4.17). 18. There are near equal distribution among the different category of the growers on the practise of organic coffee cultivation. The mean value of land under organic cultivation for large, medium and small growers is 1.36, 1.22, and 1.04 hectares respectively. The result show non significant value of F=.418 P=.658 (Table 4.18). Perceptions of the Coffee Growers : Coffee Production and Processing 1. Out of the sample respondents of 763 coffee growers 422(55.3%) respondents agreed that the quality of coffee is not consistent at the farm gate level. This comprises of which 74.8% were the large coffee growers, 65.4% medium growers and 48.2% were small coffee growers. The significant value is (CC=.214; P=.000). The reason behind this is that the coffee growers are not serious about the coffee processing parameters. The study also states that majority of 499 respondents (65.4%) stated that the coffee growers are not serious about the coffee processing parameters of which 70.8% are medium coffee growers, 65.4% are small coffee growers and 50.7% are the large coffee growers (CC=.106;P=.071 NS). (Table 4.19);.(Table 4.20) 2. Most of the respondents that are 486 (63.7%) agree that coffee growers are ignorant that their cultivation standards affect the cup taste of coffee. This group comprises of 75.4% of medium coffee growers, 61.5% small coffee growers and 60.5% of the large coffee growers (CC=.150; P=.001). The growers are more traditional in their approach towards the coffee cultivation. It reveals that the coffee growers are ignorant of the influence of cultivation standards on the final cup taste. This will bear a serious consequence in the global coffee market. In 246

10 the free and competitive coffee market it s only the qualitative coffee giving good cup taste ensure positive marketability. Thus, the assistance of the plantation institutions is the need of the hour. But the study shows that among the 763 sample respondents very less number of 76 (10%) agree that the coffee growers should take the assistance of the Institution of plantation management. This comprises of 10.5% of small coffee growers, 9.25 medium coffee growers and 8.4% of the small coffee growers (CC=.068;P=.473 NS). (Table 4.21;Table 4.22) 3. The majority of 501 (65.7%) of the sample respondents agreed that the majority of the coffee growers are not aware of the benefits of organic coffee cultivation. This group is made of 74.6% of medium coffee growers, 65.8% of small coffee growers and 55.5% of large coffee growers (CC=.118; P=.029 NS). Most of the small coffee growers practise traditional organic cultivation but it s seldom sold as organic coffee. The organic coffee has all possibilities of good trade benefits as it occupies a niche position in both the global and domestic coffee market. But the certification processes pose the hindrance. This is evident from the finding that among the sample respondents of 763 coffee growers 470 (61.6%) agreed that the organic coffee certification is expensive and cumbersome. This comprises of 73.1% of large coffee growers, 60.8% medium coffee growers and 59.1% small coffee growers (CC=.108; P=.063 NS). (Table 4.23 and 4.24) 4. Only a small number of 119(15.6%) of the total respondents agreed that the small growers can sell after processing coffee instead of raw beans for better returns. In this category 17.6% were large coffee growers, 16.9% were medium coffee growers and 14.8% were small coffee growers (CC=.042; P=.858 NS). To process the coffee, infrastructure like the pulper, cement drying yard is very essential The value added to the product will gain market advantage As majority of the coffee growers are small growers with no financial advantage, they cannot facilitate themselves with the needed infrastructural facilities (Table 4.25). 5. A very small number of 140(18.3%) sample respondents comprising of 26(21.8%) large coffee growers, 92(17.9%) and 22(16.9%) agreed that the quality of coffee suffers after the growing stages (CC=.102;P=.091 NS). To make the coffee growers aware of the quality of their produce at the estate level, 247

11 the quality assessment at the farm gate is needed. Among the total 763 respondents only a weak majority of 75(9.8%) respondents agreed that assessment of quality at the farm gate is essential for the quality prone coffee. This comprises of 11.9% of small coffee growers, 5.9% large coffee growers and 5.4% of medium coffee growers (CC=.133; P=.008). (Table 4.26 and 4.27). 6. Less number of 80(10.5%) respondents agreed that moisture level in the coffee at the grower s level determines the quality. Of which 60(11.7%) are small coffee growers, 12(9.2%) medium coffee growers and 8(6.7%) small coffee growers (CC=.156; P=.001).The moisture level in the coffee determines its quality and the efficient cup taste. This is essential for qualitative post harvest processing of coffee otherwise; the product adopts certain features on storage and in the transportation and bear an influence on the final cup taste. All these are controlled by the level of moisture. But the result reveal that only smaller majority of 62(8.1%) among the total sample respondents of 763 respondents agreed as to the need for moisture detecting gadget at the purchase point for price determination. This group comprises of 46(8.9%) small coffee growers, 8(6.7%) large coffee growers and 8(6.2%) medium coffee growers (CC=.135; P=.007). (Table 4.28 and 4. 29). 7. Among the total respondents of 763 growers 111(14.5%) of which 21(16.2%) were large coffee growers, 19(16%) medium coffee growers and 71(13.8%) small coffee growers agreed that better infrastructural facilities of the large growers help in bargaining (CC=.099; P=.110 NS). Out of the sample size of 763 respondents 69(9%) respondents comprising of 11.8% of large coffee growers,9.3% small coffee growers and 5.4% medium coffee growers agreed that after liberalization there is spurt in the land value (CC=.085;P=.236 NS). (Table 4.30 and 4.31). 8. Majority of 603(79%) agreed that coffee production costs are on the rise and it does not match the return in certain years. This group comprises of 104(87.4%) large coffee growers, 106(81.5%) medium coffee growers and 393(76.5%) small coffee growers (CC=.106; P=.072 NS). It is evident that the return from the coffee plantation is not economically feasible for the growers. It is also found that the youngsters migrate to the urban areas. Large number of 626(82%) that is 248

12 109(91.6%) large coffee growers, 118(90.8%) medium coffee growers and 399(77.6%) small coffee growers agreed that the youngsters prefer career in the urban centres than in plantations (CC=.164; P=.000). (Table 4.32 and 4.33). 9. A low majority of 160(21%) agreed that adulteration of coffee takes place at the curing stage, of which 41(34.5%) are the large coffee growers, 27(20.8%) are medium coffee growers and 92(17.9%) are the small coffee growers (CC=.147; P=.002). The result shows that adulteration of coffee not only takes place at the curing works. The adulteration of certain degree is permissible with the adulterating agent, chicory. This done to suit the taste of the certain customers (Table 4.34). 10. Less majority of 37(4.8%)of the sample respondents comprising of 7 (5.9%) large coffee growers, 27(5.3%) small coffee growers and 3 (2.3%) medium coffee growers agreed that unscheduled rains during picking season effects the bean quality (CC=.081;P=.284 NS) (Table 4.35). 11. Among the total sample size of 763 growers, the majority of 526(68.9%) agreed that coffee growers do traditional cultivation which is more organic and not marketed as certified organic coffee. This category comprises of 100(76.9%) medium coffee growers, 81(68.1%) large coffee growers and 345(67.1%) small coffee growers (CC=.147; P=.002). A very small percentage of 11% (84 growers) made of 22.7% %(27 growers) of large coffee growers,9.3% (48 growers) of small coffee growers and 6.9%(9 growers) of medium coffee growers agreed on co-operative based certification with a common quality parameter will enhance the position of coffee growers (CC=.169;P=.000). This result shows that though the organic coffee cultivation is in practise, the coffee growers do not consider the advantage of marketing it with the brand label. The co-operative based certification will enhance the position of the coffee growers.(table 4.36 and 4.37) : Profile of Trading and Marketing of Coffee 12. Out of 763 (100%) 72 (9.4%) respondents agreed that liberalization of coffee market has increased the growers returns, of which 12.1% were the small coffee growers, 6.2% medium coffee growers and 1.7% were the large coffee growers 249

13 (CC=.183;P=.000). Very small number of 41(5.4%) sample respondents agreed that Indian coffee growers should get prices equal to the international prices. This comprises of 35 (6.8%) of small coffee growers, 3 (2.5%) of large coffee growers and 3(2.3%) of medium coffee growers respectively. (CC=.130; P=.011) (Table 4.38 and 4.39). 13. Out of 763 sample respondents 477(62.5%) consisting of 91(70%) medium coffee growers, 327(63.6%) small coffee growers and 59(49.6%) large coffee growers agreed as to the existence of more price volatility leading to speculation and stockholding by the coffee growers (CC=.186;P=.000). The majority of 498(65.3%) respondents comprising of 98 (75.4%) of large coffee growers, 81(68.1%) medium coffee growers and 319(62.1%) small coffee growers agreed that price manipulation by coffee traders and agents is rampant (CC=.136; P=.006). (Table 4.40 and 4.41). 14. Minor group of 119 (15.6%) respondents agree that coffee future market will help in increased price realisation. This is represented by 22(18.5%) large coffee growers, 83(16.1%) small coffee growers and 14(10.8%) of medium coffee growers (CC=.074; P=.648 NS).Out of the total sample size of 763 sample respondents 134(17.6%) agreed as to the need for the coffee exchange. This respondents groups comprised of 27(22.7%) large coffee growers, 88(1.1%) small coffee growers and 19(14.6%) medium coffee growers (CC=.155; P=.001). The sample size of 67(8.8%) respondents depicting the minor group consisting of 19(16%) large coffee growers, 9 (6.9%) medium coffee growers and 39(7.6%) small coffee growers agreed on the need for minimum support price for coffee (CC=.110;P=.053 NS).(Table 4.42, 4.43 and 4.44). 15. The majority of 347(45.5%) respondents agreed that the withdrawal of coffee board from the marketing of coffee is a disadvantage in the long run. This group of respondents comprises of 62(47.7%) of medium coffee growers, 240(46.7%) of small coffee growers and 45(37.8%) large coffee growers (CC=.121; P=.022). Fair majority of 339(44.4%) respondents agreed that the liberalized coffee market has augmented the marketing problems for the coffee growers. The positive respondents were 240(46.7%) of small coffee growers, 56(43.1%) medium coffee growers and 43(36.1%) large coffee growers (CC=.083; P=

14 NS). It is evident that the liberalized coffee market has brought in challenges in the area of coffee marketing.(table 4.45 and Table 4.46). 16. Comparatively lower majority of 68(8.9%) of the respondents agreed on the inevitable need for observing the price movements, of which 9.3% are small coffee growers, 9.2% are large coffee growers and 6.9% are medium coffee growers (CC=.080;P=.293 NS).It is statistically insignificant with less variation in the responses.(table 4.47). 17. Less number of 73(9.6%) respondents agreed that liberalization of coffee market has increased the interest in the estate management among the growers..of these respondents 10.9% are small coffee growers, 7.6% are large coffee growers and 6.2% are the medium coffee growers (CC=.129; P=.012). Very less number of 24(3.1%) respondents agreed that fair trade coffee should be promoted. Among them 21(4.1%) were the small coffee growers, 3(3.1%) large coffee growers but none in the category of medium coffee growers felt the need for the promotion of fair trade coffee (CC=.105; P=.074 NS). The increased interest in estate management will focus more towards innovative measures of cultivation and qualitative parameters of coffee trade. (Table 4.48 and 4.49). 18. Among the total sample respondents of 763 growers only 75(9.8%) agreed on the need for growers co-operatives for curing and branding of coffee, of which 19(16%) are large coffee growers, 48 (9.3%) are small coffee growers and 8(6.2%) medium coffee growers (CC=.117; P=.032). For the progressive marketability of Indian coffee value addition is necessary. The co-operatives for furthering the processing operation at the estate level will increase the bargaining power of the coffee growers especially of the small and the medium growers. (Table 4.50). 19. Only 75(9.8%) of the sample respondents agreed that phased lot selling will fetch maximum returns to the coffee growers than the one time selling. This category consisted of 60(11.7%) small coffee growers, 8(6.2%) medium coffee growers and 7(5.9%) large coffee growers (CC=.106; P=.071 NS). The phased lot selling is done to get best going prices as the coffee prices are very volatile. The phased lot selling can be undertaken by the coffee growers who have better 251

15 stock holding capacity. It is also found that comparatively higher number of 331(43.4%) respondents agreed that Indian coffee prices are more volatile than the international prices, of which 272(52.9%) are the small coffee growers,33(27.7%) are large coffee growers and 26(20%) are medium coffee growers (CC=.301; P=.000).(Table 4.51 and 4.52). 20. The sample respondents of 182(23.9%) agree that the state government should introduce coffee co-operative on the lines of HOPCOMS. This group consists of large number of 57(47.9%) of large coffee growers, 35(26.9%) of medium coffee growers and 90(17.3%) of small coffee growers (CC=.266; P=.000).Less majority of 94(12.3%) respondents comprising of 18(13.8%) medium coffee growers, 67(13%) small coffee growers and 9(7.6%) large coffee growers agree that the retailers benefit the most in the coffee marketing channel (CC=.091;P=.169 NS).(Table 4.53 and 4.54). 21. The vast majority of the sample respondents of 572 (75%) comprising of 111(85.4%) medium coffee growers, 96(80.7%) large coffee growers and 365(71%) small coffee growers agree that the coffee growers lack marketing expertise (CC=.136; P=.006). Hence to facilitate the marketing needs of the coffee growers, there is a need for Government sponsored coffee grower s association. Out of the total sample of 763 respondents 116(15.2%) agree that there is a need for Government sponsored coffee growers association to aid the coffee growers to market the products. Of which 42(35.3%) are large growers, 16(12.3%) are medium coffee growers and 58(11.3%) are small coffee growers (CC=.244; P=.000). (Table 4.55 and 4.56). 22. Lower number of 40(5.2%) respondents comprising of 32(6.2%) small coffee growers, 6(4.6%) medium coffee growers and 2(1.7%) large coffee growers agree that the Indian shade grown coffee should be highlighted as the specialty coffee in the world market (CC=.117; P=.032). The shade grown coffee represents the specialty segment of coffee which has huge demand in the international market. By considering the needed production and market guidelines the Indian specialty coffee has possibility of securing niche position in the global market to earn premium prices. The response towards the involvement of agricultural institutions to highlight the requirement of effective 252

16 coffee marketing is analysed. Among the total respondents of 763 growers only 45(5.9%) agreed that various agricultural institutions should be involved to highlight the coffee growers of the requirements of effective coffee marketing. This group consists of 34(6.6%) small coffee growers, 8(6.2%) medium coffee growers and 3(2.5%) large coffee growers (CC=.086; P=.227 NS). (Table 4.57 and 4.58). 23. The higher number of 456(59.8%)respondents agreed that the immediate post harvest prices are always lower, of which 91(70%) are medium coffee growers, 313(60.9%) are small coffee growers and 52(43.7%) are large coffee growers (CC=.183; P=.000).The price of coffee is influenced by its demand and supplies. Hence the market price will be low due to the easy availability of coffee immediately after harvest. Hence, the Indian coffee should carry a brand tag as a marketing tool. Against this statement only 89(11.7%) respondents comprising of 21(17.6%) large coffee growers,59 (11.5%) small coffee growers and 9(6.9%) medium coffee growers agree on the necessity of branding Indian coffee as a marketing tool (CC=.123; P=.019).(Table 4.59 and 4.60). 24. The higher number of 614(80.5%) of the respondents agree that compared to tea the coffee advertisement is very low. This group consisted of 112(86.2%) of medium coffee growers, 410(79.8%) of small coffee growers and 92(77.3%) of large coffee growers (CC=.073; P=.399). Very less number of 29(3.8%)of sample respondents comprising of 5(4.2%) of large coffee growers, 21(4.1%) of small coffee growers and 3(2.3%) of the large coffee growers agreed that the coffee board should take up effective advertisement to boost the domestic coffee consumption (CC=.058;P=.633 NS).(Table 4.61 and 4.62) 25. Vast majority of 471(61.7%) sample respondents agree that the price fixing mechanism of the intermediaries is unscientific. Among these respondents medium coffee growers are 93 (71.5%), 72(60.5%) are large coffee growers and 306(59.5%) are small coffee growers (CC=.126; P=.015). The coffee board being a nodal agency, its functioning should be conducive to serve the interest of the coffee growers. Hence the statement coffee board is bureaucratic is analysed. Wherein, less majority of 130(17%) of the sample respondents consisting of 101(19.6%) small coffee growers, 18(13.8%) medium coffee 253

17 growers and 11(9.2%) large coffee growers agree. (CC=.130; P=.011). (Table 4.63 and 4.64). 26. The sample size of 125(16.4%) agree that there is more incentive for expanding coffee cultivation in the country. In this group 25(21%) are large coffee growers, 26 (20%) are medium coffee growers and 74(14.4%) are small coffee growers (CC=.087; P=.216 NS).The larger majority of the 524(68.7%) respondents agree that the rise in the cost of production of coffee does not always match the returns. Of which 105(80.8%) are medium growers, 89(74.8%) are large coffee growers and 330(64.2%) are small coffee growers (CC=.151;P=.001). It projects that the inputs of production of coffee is on the rise and does not meet the returns from the output. Thus the coffee growers do not have more incentive towards expanding the coffee cultivation in the country. (Table 4.65 and 4.66). 27. Out of the total sample respondents 112(14.7%) agreed on the need for Government sponsored auction centres for marketing of coffee. This group comprises of 29(24.4%) large coffee growers, 72(14%) small coffee growers and 11(8.5%) medium coffee growers (CC=.152; P=.001). Less number of 77(10.1%) sample respondents agrees that regulated coffee market should work as a grower co-operative. This opinion is shared by 28 (23.5%) respondents of large coffee growers, 41(8%) of small coffee growers and 8(6.2%) of the medium growers (CC=.234; P=.000). (Table 4.67 and 4.68). 28. A weak majority of 37(4.8%) respondents consisting of 30(5.8%) small coffee growers, 4(3.1%) medium coffee growers and 3(2.5%) large coffee growers agreed that the coffee growers should be educated on the quality parameters of coffee production for the Indian coffee to be promoted as a brand (CC=.122; P=.021). The majority of 143(18.7%) of the sample respondents agreed that the liberalization of coffee market is more beneficial to the large growers. Among which there are 46 (38.7%) large coffee growers, 25(19.2%) medium coffee growers and 72(14%) large coffee growers (CC=.228; P=.000). (Table 4.69 and 4.70). 254

18 29. A thin majority of 46(6%)of the sample respondents comprising of 37(7.2%) small coffee growers,6(5%) large coffee growers and 3(2.3%) medium coffee growers agreed on the need for coffee preparation training courses (CC=.092; P=.161 NS). The sample respondents of 116(15.2%) consisting of 88(17.1%) small coffee growers, 17(13.1%) medium coffee growers and 11(9.2%) large coffee growers agreed that coffee vending machines are the effective retail outlets (CC=.123; P=.019). Only 59(7.7%) respondents agreed that to improve the status of Indian coffee marketing the Indian specialty coffee should be promoted. This category of respondents were made up of 43(8.4%) small coffee grower, 9(7.6%) large coffee growers and 7(5.4%) medium coffee growers (CC=.062; P=.572 NS). (Table 4.71, 4.74 and 4.72). 30. The sample size of 119(15.6%) agree that there is scope for expansion of coffee cultivation. This comprises of 22(16.9%) medium coffee growers, 19(16%) large coffee growers and 78 (15.2%) small coffee growers. This denotes statistically non significant result (CC=..061; P=.587) as there is no much variation in the opinion of different categories of coffee growers. (Table 4.73). 31. The minority group of 133(17.4%) respondents agreed on the need for highlighting the positive health effects of coffee consumption. This opinion was shared by 92(17.9%) small coffee growers, 22(16.9%) medium coffee growers and 19(16%) large coffee growers (CC=.020; P=.990 NS). A thin majority of 39(5.1%) respondents agreed that coffee consumption should spread to non traditional coffee areas. This category consists of 29(5.6%) small coffee growers, 5(4.2%) large coffee growers and 5(3.8%) medium coffee growers (CC=.115; P=.037).(Table 4.75 and 4.76) 32. The 51(6.7%) respondents comprising of 11(8.5%) medium coffee growers, 38(7.4%) small coffee growers and 2(1.7%) large coffee growers agreed that the qualitative Indian coffee will increase the competitive strength of Indian coffee in the global market.(cc=.112; P=.045). Lesser number of 84(11%) respondents out of the sample respondents of 763 agreed that various schemes of coffee board helped the small and medium coffee growers. Out of which 15(11.5%) are medium coffee growers, 58(11.3%) are small coffee growers and 11(9.2%) are large coffee growers. (CC=.059; P=.623 NS). (Table 4.77and 4.78). 255

19 5.3: Conclusion In the free market the global retailers source their supplies through their dedicated vendors where accountability and traceability of the product are maintained. Indian coffee growers being traditional in their approach have not adapted to the modern techniques of marketability. Its only the good Agricultural Practices (GAP), safety standards along the chain will bring stability to the coffee trade and increase price realization. The result of these projections indicates that the global green coffee demand and supply will continue to grow on the basis of qualitative standards. Indian coffee industry dominated by the small holders could not maintain consistency in their supply of coffee which is a hindrance. India s advantage coffees (shade grown, bird friendly and organic coffee) grown under environmental friendly conditions can be highlighted by compressing the supply chain. This will enhance the competitive strength and will ensure that the coffees are produced and delivered in a consistent and reliable manner. Considering suitable measures will transform coffee business to a sustainable and commercially advantageous venture. 256