Good returns in the past few years from cocoa farming have helped in reviving cultivation of this lucrative cash crop in south India. Officials at the Directorate of Cashew and Cocoa Development (DACCD) said, with the government increasing the subsidy for cocoa farming by almost Rs 10,000 per hectare from April 1, 2010, area under cocoa is likely to increase by 30-40 % in the next two years.

Currently, 34,000 hectare (ha) is under cocoa cultivation. Andhra Pradesh leads with nearly 14,000 ha and followed by Kerala with 10,000 ha. ?Good prices of cocoa have prompted farmers to look at cocoa in a different way. In the last one year, around 600 ha has come under cocoa in Tamil Nadu and 1,800 ha in Karnataka,? Venkatesh N Hubballi, director of DACCD told FE.

Average price for dry cocoa beans has moved up to Rs 170 per kg in Idukki district, in the last few years. The commodity is in short supply and demand is very good. Procurement prices of cocoa are already high in India as buyers compete for it.

Dry beans were selling around Rs 130-140 per kg in December 2009, while wet beans were sold around Rs 38-45 per kg. In 2008, around the same time, dry cocoa beans fetched around Rs 80 per kg, while wet beans fetched just Rs 25-33 per kg.

Indian demand for cocoa is increasing at a healthy rate of 8% per annum. The Indian chocolate market is believed to be worth around Rs 15 billion and offers great potential for western chocolate manufacturers as the market is still in its early stages.

India imported 19,000 tonne of cocoa products, which include beans, paste butter and chocolate preparations, in 2007-08 fiscal.

The total value of imports comes to Rs 189 crore and in 2008-09 the total value of imports was estimated to be around Rs 184.5 crore. Indian farmers had a disappointing start with cocoa in the 80s.

However, this time cocoa is being promoted more as an inter-crop to coconut and arecanut to minimise the risk.

According DACCD sources, India ‘s cocoa production is likely to cross 17,000 tonne in five years from the present 10,000 tonne. DACCD plans to bring another 75,000 hectare under cocoa cultivation in the next five years.

?Perception about cocoa farming has entirely changed in the past few years. Cocoa is now being promoted as inter-crop unlike earlier when it was sold as a mono-crop,? Venkatesh said. This reduces risk for farmers even in times of falling prices, he added. Low productivity of cocoa also adds to the advantage of using it as an inter-crop. Cocoa production is likely to get a boost with the Government doubling the subsidy provided for re-planting, Hubballi said.

?From April 1, farmers will get Rs 20,000 per hectare for planting cocoa as against Rs 11,250 in the past. This should encourage farmers to re-plant more area,? he added.

Indian productivity is almost 40-50% less than global standards, which is close to 1,000 kg per hectare, Venkatesh added.

Focus of the cocoa crop expansion programme will be Andhra Pradesh, Tamil Nadu and Karnataka, with the directorate spending Rs 77 crore under the 11th Plan. Andhra Pradesh, Tamil Nadu and Karnataka together, have around 3, 00,000 hectares of irrigated coconut plantations, which can be exploited to provide additional income to farmers, Hubballi added.