Project Coffee Development

• Government through G.O.Ms. No.33 T.W. (TSP) Department dt.03.06.2015 sanctioned a 10 year Comprehensive Coffee Development Project for Paderu Agency at a total cost of Rs.526.16 crores over a period of 10 years (2015-16 to 2024-25). The Project provides for expansion of coffee plantations in one lakh more acres, quality improvement through wet processing & organic certification and Marketing intervention through GCC. The project cost is to be met from TSP / State Funds.
• Marketing support Activity assigned to this Corporation involves pooling of coffee of the tribal growers and to undertake processing and marketing of such coffee in the best advantage of coffee farmers through auctions.
• The expansion of Coffee plantation in one lakh more acres activity assigned to ITDA, Paderu
• During 2022-23 coffee season, the APEX Committee on coffee prices has decided to pay Coffee payment in single installment to tribal coffee growers i.e. @ Rs.270/- & Rs.285/- for Ar.Parchment Coffee, Rs.135/- & Rs.145/- for Ar.Cherry coffee and Rs.60/- for Robusta Cherry Coffee per kg and the same was implemented by GCC.

Mandal-wise Coffee Plantations

Marketing support from GCC

• Arabica coffee is the main variety grown in the tribal areas of Paderu Agency. The extent of Robusta variety cultivation is very negligible. A rough assessment puts the average yield of Arabica coffee in this region at 5000 M.Ts. In Paderu Agency the preferred mode of sale by tribal farmers is in the form of Cherry coffee and Parchment coffee.
• As per the entrustment made in the project, this Corporation is taking up pooling, processing and disposal of coffee since the year 2015-16.

Pricing for Raw Coffee

• The Apex Committee constituted for the purpose fixes pooling rates of raw coffee basing on previous year’s average rates and the existing market rate communicated by Coffee Board.

Raw Coffee pooled in the past 8 years

Procurement of Raw Coffee during 2022-23 Season

• During the season 2022-23, 480.111 MTs of Ar. Parchment and 516.078 MTs of Ar. Cherry have been pooled up for which an amount of Rs.20.07 crores have been paid to the tribal farmers.

Status on Organic Certification

• To benefit 2600 Farmers, 3 clusters in 40 villages in Chinthapalli mandal and 3 clusters in 42 villages in G.K.Veedhi mandal.
• GCC received Organic Certification for Coffee grown in 884.55 Hectors by 1300 farmers of Chintapalli Mandal and also received 2nd Year Organic Scope Certification for Coffee grown in 1374 Hectors by 1300 farmers of G.K.Veedhi Mandal during this year. This will benefit these 2600 Tribal Coffee Farmers to get better sale realization for their coffee grown.

Highlights of the GCC Coffee Project during 2022-23 season

• During 2022-23 season coffee procurement has been done vigorously by GCC by paying highest ever and over the existing market price of Rs.270.00 & Rs.285/- per Kg for Ar. Parchment Coffee and Rs.135/- & Rs.145/- per Kg for Ar. Cherry Coffee, thereby protecting tribal farmers from exploitation of middlemen and providing them adequate income for their livelihood. So far 480.11 MTs of Ar. Parchment and 516.07 MTs of Ar. Cherry has been pooled up for which an amount of Rs.20.07 crores has been paid to the tribal farmers. The season for Coffee pooling has commenced during December and the pooling of Coffee will be last up to April, 2023. Hence, a quantity of 1000 MTs is procured during this season by pumping more than Rs.20.00 Crores to the tribal coffee growers.
• GCC has extended Credit loans to Tribal farmers for Coffee operations to a tune of Rs.1.06 Cr during the season 2022-23.
• The Coffee so procured is also being marketed through brand name “Araku Valley Coffee” through variants like Filter Coffee, Instant Coffee Pure and Instant Coffee Blend.
• GCC is also facilitated Organic Certification for Coffee grown in 884.55 Hectors by 1300 farmers of Chintapalli Mandal and 2nd Year Organic Scope Certification for Coffee grown in 1374 Hectors by 1300 farmers of G.K.Veedhi Mandal during this year. This will benefit these 2600 Tribal Coffee Farmers to get better sale realization for their coffee grown.
• GCC disposes Raw Coffee viz., Arabica Parchment Raw Coffee and Arabica Cherry Raw Coffee through NeML e-platform.
• GCC also planning to Export Coffee to the International Market and also received Importer-Exporter Code (IEC) on 18.08.2023. GCC IEC code is : AAJAG2491H.

Establishing Composite Coffee Processing Unit at Narsipatnam

• Government of Andhra Pradesh has sanctioned Rs.3.00 Crores for establishing Composite Coffee Processing Unit at Downuru, Narsipatnam.
• GCC is planning to incorporate all the features from curing of Raw Coffee to roasting, grinding and Packaging.
• This will help GCC avoiding depending on APFDC and private players from Curing & Manufacturing of Coffee.
• This will also benefit tribal coffee growers as GCC will be in a position to pay better prices to them as overheads like transportation for manufacturing of Coffee will be reduced.