Introduction to Beverages

Crops in India

India, with its diverse agro-climatic conditions, has a rich heritage in

cultivating a variety of crops, including those used for beverages. Beverage
crops like tea, coffee, and cocoa have significant importance in the Indian
agricultural landscape, contributing to both domestic consumption and
exports. These crops are integral to the rural economy, providing
employment and livelihood to millions of farmers, especially in regions like
Assam, Kerala, Karnataka, and West Bengal.

Tea and coffee are the most prominent beverage crops, with India being
one of the largest producers and consumers of these beverages globally.
The cultivation of these crops is influenced by specific climatic conditions,
making certain regions particularly suited for their production. Tea, for
example, thrives in the humid and hilly terrains of the northeastern states
and parts of southern India, while coffee is predominantly grown in the
shaded plantations of Karnataka, Kerala, and Tamil Nadu.
Objectives of the Case Study on Beverage Crops in
India

• To Analyze the Production Trends of Beverage Crops

Investigate the historical and current production trends of key
beverage crops such as tea, coffee, cocoa, and others in India. This
includes an examination of production volumes, regional distribution,
and factors affecting growth patterns.

• To Study the Economic Impact of Beverage Crops

Evaluate the contribution of beverage crops to India’s economy,
including their role in employment generation, export revenues, and
the rural economy. Analyze how these crops support livelihoods,
especially in regions heavily dependent on agriculture.

• To Understand the Challenges Faced by the Beverage Crop

Industry
Identify the key challenges affecting beverage crop cultivation, such
as climate change, price fluctuations, labor issues, and pest
management. Explore the impact of these challenges on production
and farmer income.
Tea production

India is the second-largest producer of tea globally.

Indian tea is one of the finest in the world owing to
strong geographical indications, heavy investment in
tea processing units, continuous innovation,
augmented product mix, and strategic market
expansion. As of 2022, a total of 6.19 lakh hectares of
area was cultivated in India for tea production. India is
also among the world's top tea-consuming countries,
with 80% of the tea produced in the country consumed
by the domestic population. In 2022-23, India’s tea
production stood at 1,374.97 million kgs, compared to
1,344.40 million kg in 2021-22.

The Assam Valley and Cachar are the two tea-producing

regions in Assam. In West Bengal, Dooars, Terai and
Darjeeling are the three major tea producer regions.
The southern part of India produces about 17% of the
country's total production with the major producing
states being Tamil Nadu, Kerala, and Karnataka.
Coffee production

India became the world’s eighth-largest coffee grower

during 2022-2023. Indian coffee is one of the best coffees
in the world owing to its high quality and premium quality
in international markets. India produces two types of
coffee: Arabica and Robusta. Arabica has a higher market
value than Robusta coffee due to its mild aromatic flavour.
Robusta coffee is used in making various blends due to its
strong flavour. Robusta is a majorly manufactured coffee
with a share of 72% of the total production of Indian
coffee. India is considered the fifth largest producer of
Robusta coffee globally. The industry provides direct
employment to more than 2 million people in India. Since
coffee is an export commodity for India, domestic demand
and consumption do not drastically impact the prices of
coffee.
India's combined Arabica and Robusta harvest is forecast
to increase for the 2023-24 crop year, beginning in
October, according to early estimates from the Coffee
Board. The projected total crop is expected to reach 3.74
lakh tonnes, marking a 6.25% rise from the final estimate
of 3.52 lakh tonnes for the 2022-23 season. The Board
predicts a higher output of Arabica at 1.13 lakh tonnes, up
from 1 lakh tonnes in the current season, while robusta
production is anticipated to rise to 2.61 lakh tonnes from
2.52 lakh tonnes.
Coffee is produced in the southern part of India. Karnataka
is the largest producer, accounting for about 71% of the
total coffee production in India. Kerala is the second-
largest producer of coffee but accounts only for about
20% of the total production. Tamil Nadu is the third-largest
producer, with 5% of India’s total coffee production. Half
of Tamil Nadu’s coffee is made in the Nilgiri district, a
major Arabica-growing region. Orissa and the north-
eastern areas have a smaller proportion of production.
Cashew Apple Production

Though, cashew, is an exotic horticultural crop brought to India by

Portuguese travellers in 16th Century but now adapted well in
Indian conditions. It is grown along the coastal regions of
Maharashtra, Goa, Karnataka and Kerala in the West Coast and
Tamil Nadu, Andhra Pradesh, Odisha and West Bengal in the East
Coast. It is spreading in non-traditional areas such as Bastar
region of Chhattisgarh and Plain regions of Karnataka, Gujarat,
Jharkhand and in NEH region. Due to its high nutritional value and
increasing affordability by the consumers, demand for cashew
continues to increase both in India and in foreign countries.
During 2012-13, total production of cashew in the country was
7.28 lakh tonnes from 9.82 lakh ha of land with a productivity of
772 kg/ha. Moreover, the productivity of cashew nut in India is
very. There is a wide gap between potential productivity and
present productivity. The major factors for low productivity are the
large plantations under seedling origin, poor orchard
management practices and severe incidence of tea mosquito bug
(TMB) and cashew stem and root borer (CSRB).
Arecanut Production

Karnataka leads in both area (19.91%) and production (17.38%) of arecanut

in the state, with Chikmagalur at the top, followed by Shimoga and
Davanagere districts. The top seven districts—Chikmagalur, Shimoga,
Davangere, Dakshina Kannada, Tumkur, Chitradurga, and Uttara
Kannada—account for 89% of the cultivated area and 91% of production.
The remaining 21 districts contribute 11% of the area and 9% of production.

Farmers in Karnataka have expanded cultivation in response to price stimulus,

especially after the establishment of CAMPCO Ltd, which provided a
cooperative marketing network. According to Yadav (2007), farmers in both
traditional and non-traditional areas responded positively to price changes, as
seen in Figure, showing an upward trend in the area and production of arecanut
since 1990.

Challenges in accurate data collection arise due to unsystematic cultivation in

the Northeast and under-reporting in newly expanded areas, where arecanut
often replaces crops like paddy, ragi, or pulses. Arecanut expansion in non-
traditional regions, such as the Tungabhadra command area, remains largely
undocumented in revenue records.
Conclusion

India's beverage crops, such as tea, coffee, and cocoa, are

vital to the country's economy, providing livelihoods to
millions and contributing significantly to exports. Despite
challenges like climate change and market fluctuations,
the sector shows strong potential for growth, especially in
the organic and specialty beverage markets. With
continued investment in sustainable farming and
improved infrastructure, India can further enhance its
global position while ensuring long-term benefits for its
farmers and the economy.