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Growing cocoa crop along with coconuts Business

The Government of Tamil Nadu is working to increase the earnings of coconut growers in the state and towards this purpose it has signed a memorandum of understanding (MoU) with leading FMCG company Cadbury India Ltd (CIL), at a ceremony in Tiruchirapalli on June 30, 2007. In Tamil Nadu, around nine lakh acress are under coconut plantation. With an average yield of coconut stagnating at 4,590 nuts per acre, the average income of the farmers in the State is as low as Rs 15,000 per annum. The government has, therefore, been consistently looking for ways and means to augment the income of the coconut farmers.

With this objective, the government has launched a new initiative to promote ‘Cocoa’ as an intercrop in the coconut fields. Cocoa grows best in coconut orchards as it needs some shade.

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Cocoa is expected to yield 1,000 kg of beans per hectare. If sold at Rs 60 per kg it may get the farmers an additional income of Rs 60,000 per hectare and a net profit of Rs 40,000. This shall be in addition to the income from coconut.

Since it is a relatively new crop for the farmers of Tamil Nadu, the government has signed an MoU with Cadbury India Ltd under which:

a) The Commissionerate of Horticulture shall:

  • together with CIL, identify the clusters and farmers for cultivation of cocoa;

  • render such financial and other assistance to the cocoa farmers as is available under various schemes of the government subject to prescribed guidelines.

  • through CIL or otherwise, arrange for exposure visit of the prospective cocoa farmers, to the existing cocoa farms to provide them an understanding about cocoa cultivation.

  • make endeavours to facilitate institutional credit for the farmers.

b). Cadbury India Limited shall:

  • provide cocoa seedlings at the prevailing price of Rs 4 per seedling with price revisions thereto, communicated by CIL from time to time and render such reasonable technical advice as the cocoa growers may require, such as advising the cocoa growers on cultivation techniques, providing valuable literature on cocoa farming, and conducting free inspections cocoa farms/plantations by CIL personnel and experts;

  • CIL will buy cocoa bean produced from the cocoa growers at the prevailing market rates with a minimum floor price of Rs 60 per kg for dry cocoa bears (net weight excluding the weight of packing material), provided that the cocoa bean meets the specifications communicated to the growers from time to time.

Cadbury India Ltd has also agreed to sign a separate contract with the farmers. Under this contract they shall buy back cocoa from the farmers at minimum rate of Rs 60 per kg during the following five years.

Cocoa farmers shall be eligible for the following financial assistance for establishing the garden and fertigation.
1. For establishing new cocoa garden - Rs 11,250 per hectare.
2. Micro irrigation - 50 per cent of the Unit cost.

During the period of MoU, that is, during the next five years, it is aimed to bring 50,000 acres under cocoa. It shall help generate additional income every year to the value of Rs 80 crore per annum for the coconut growers.

R Rangaraj

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Published on July 3rd, 2007


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