Problems of Araku Valley Coffee Farmers

There are more than 3,40,000 farmers who cultivate coffee in 2,30,000 acres in 11 Mandals of Araku Valley in Alluri Sitaramraju District of Andhra Pradesh. General Secretary of AIKS, Comrade Vijoo Krishnan interacted with Kodhu Particularly Vulnerable Tribal Group Coffee Farmers at Peddagangudi Village, Sunkarmetta Panchayat in the Araku Valley Mandal. Sarpanch Chinnababu, a leader of All India Kisan Sabha and Coffee Farmers’ Federation of India was present to explain the problems.

Farmers complained that the fully Organic Coffee showcased in the just concluded G-20 did not fetch them remunerative prices. It is rather the middlemen or big corporates or foundations that fashion themselves as Tribal friendly who make super profits at their cost. There is no insurance for crop loss in this rain dependent region. The ITDA had through MGNREGA earlier given Rs.36,000/acre which since 2012 has been drastically cut down to Rs.18,500/acre. About RS.60 crore arrears are due to 54,000 farmers in this particular region alone. Farmers demand at least Rs 50,000/acre and free saplings of Coffee and Silver Oak. The earlier subsidy of about Rs.34000/- for the Pulping Machine where farmers had to pay only RS.2,500/- has also been stopped. The coffee crop requires four years for the first harvest and there is no help forthcoming for this long gestation period.

The Girijana Cooperative Corporation announced RS 280)Kg for parchment dry beans but there is very meager procurement. Tribal Araku Coffee Beans are selling at Rs.1999/- for 1.8 Kg. Farmers however are reeling under losses. The Naandi Foundation founded by K Anji Reddy, who also founded the pharmaceutical giant Reddy Laboratories also pays merely Rs.50/Kg for the best berries that are red and without any blemishes like dark spots. Farmers claimed that the Foundation claims an incentive of Rs.20/Kg would be given later but never does. Few other private players including Technoserve India that partners with retail-giant Walmart and some NGOs as well as what farmers said Max which teams up with GCC (this needs verification) and they claimed Teneger (which could be a distorted usage for TechnoServe but needs verification). The BJP led Union Government and the Coffee Board as well as the State Government led by YSRCP has abandoned them claimed the farmers.

The production in an acre is on an average about 150 Kg dry parchment and the cost of production is about Rs.30,000/-. At Rs.280/Kg if all their produce is assured procurement that would mean RS 42,000/acre but farmers complained that not even 10 percent is procured at that rate. The farmers submitted a memorandum demanding at least Rs 500/Kg for parchment dry and at least Rs 1000/Kg for pepper while it is getting only Rs.300-350/Kg. Interest free loans, better school facilities etc were also demanded. Men and women workers get an equal wage if Rs.300/day for 8 hours of work.

They have decided to enrol more farmers in AIKS and CFFI and unite them to build struggles to win their demands.