n the olden days, putting your hard-earned cash in a coffee estate can and sticking it under your mattress was a common way to save your retirement years. I’m not sure why people still think twice before investing in a coffee plantation in India.
Coffee is one of the agricultural commodities that’s most traded and well known. While there are several different types of coffee plants, Robusta and Arabica are the two most common types of coffee. Approximately 75 percent of coffee production worldwide is Arabica, and about 25 percent is Robusta. Arabica beans are an excellent, moderate, aromatic coffee while Robusta has a bitter taste that stems from its much higher content of caffeine. Additional caffeine can sound like good quality, but caffeine has a bitter taste that makes it unpleasant to drink very low in desirability. Arabica is sold at a much higher price than Robusta, because of the aromatic distinction
The most remarkable of drinks is Indian coffee, which provides fascinating subtlety and relaxing strength. India is the only country where all the coffee grows during the monsoons. Such coffees are usually mild and not too acidic and have an exotic full-bodied flavor and an exquisite aroma.
Indian coffee also has a unique historical flavor! It all started about four hundred years ago with a long, arduous journey. Once legendary Saint Bababudan brought seven mystical beans from far-off Yemen and planted them in Karnataka’s Chandragiri hills. Such magical origins are embedded in the sensations of scent, taste, body, and acidity that you feel with every coffee encounter.
India has been growing all of its coffee under a clear canopy of two-tier mixed shades which comprises evergreen leguminous trees. In coffee plantations, nearly 50 different types of shade trees can be found. Shady trees avoid soil erosion on a sloping terrain; they enrich the soil by recovering nutrients from deeper layers, protecting the coffee plant against seasonal temperature fluctuations, and hosting diverse flora and fauna.
Coffee plantations in India are essential spice worlds too: alongside coffee, plants grow a large variety of spices and fruit crops such as pepper, cardamom, vanilla, orange, and banana.
VARIETIES OF COFFEE GROWN IN A COFFEE PLANTATION IN INDIA
- Kent: Kents is the earliest Arabica variety, picked during the 1920s by an English planter with the same name. The planting group remained popular with this variety until the 1940s because it was less susceptible to rust.
- Arabica: With high yields, bold beans, superior quality, and relative resistance to leaf rust, this is by far the most common Arabica variety released during the 1940s.
- Cauvery: Cauvery is a descendant of a cross between ‘Caturra’ and ‘Hibrido-de-Timor,’ popularly known as Catimor. Caturra is a natural mutation of the typical variety of Bourbon.
- Sln9: At the ‘Flavor of India-Cupping Competition 2002’ organized by India’s Coffee Board, this variety has won the Fine Cup Award for Best Arabica.
COFFEE PLANTATION IN INDIA HAS SOME BENEFITS INVESTING
When you retire, you’re sure to have that money (maybe a safe deposit box might be a safer place to keep it just in case your house burns down or a mouse family wants to build an expensive nest with cash). You will be able to plan it anyway, and you feel assured that when you need it, your money will be there.
- You can take it out and use it in an emergency whenever you need it. No one has set up laws that control when you can or cannot take it out.
- If you spend it, there are no taxes to pay.
- There are no recurring costs for keeping your money there (okay, if you go the safe deposit box route, it may cost you a couple of dollars per year, but that’s a little bit of a pittance compared to what Wall Street is assessing you in your current pension plan).
- It reduces taxes on State and federal lands.
Nobody, but you do know the coffee farm. It may be critical if creditors or greedy relatives start sniffing around for properties against which to make a legitimate ownership claim.
It is a relatively comprehensive list of benefits. Some of them, particularly the guaranteed tax-free access to your money when you need it, is very valuable.
One downside of a coffee plantation in India Investment is that you don’t get a tax deduction the first year you’re salting away your assets. It seems to be a minor factor as you look instead at all the benefits you pass on by investing your IRA or 401(k).
Coffee estate Investing’s most significant shortcoming is that inflation will eventually whittle away at your cash’s spending power. In this regard, a coffee plantation in India investment in the stock market or real estate could better protect you.
One stock market problem is that most investors have an unrealistic impression of what kind of returns to expect.
Going forward, the most stock market you can hope to make is around 4 percent a year. This figure assumes a 2 percent inflation rate and a 2 percent GDP rise. If enough money is removed from the stock market so that the price-earnings ratios decline instead of rising as they have in the past, you should expect less than 4 percent of your stock market assets each year. And even worse, if those stock market investments are in a mutual fund within a 401(k) or IRA, you’ll pay costs and fees that will drastically decrease your returns.
PLACES WHERE ONE CAN EARN HANDSOME MONEY IN INDIA
With Karnataka, 53 percent, Kerala 28 percent, Tamil Nadu 11 percent and Andhra Pradesh, Orissa, Assam, and Tripura remaining from the other states, South Indian states are the largest producers of coffee in India. Hilly area and strong monsoon in this region make it the best place for large coffee and tea plantation varieties. Indian coffee is considered to be one of the world’s most excellent coffee, rising under the shade instead of direct sunlight.
Chikmagalur is India’s first place to introduce coffee; it is also known as Karnataka’s coffee region. Chikmagalur is one of Karnataka state’s famous hill stations, located at the foothills of the Mullayanagiri range.
Its geography and environment make it one of Karnataka’s largest coffee estates, followed by Kodagu, Coorg, and Hassan. Mullayanagiri is Karnataka’s highest peak located in the Western Ghats’ Baba Budan Giri Range and the highest peak between the Himalayas and the Nilgiris regarded as Karnataka’s best trekking location.
Malabar region’s green paradise, Wayanad, is located between the majestic Western Ghats mountains. Wayanad is one of Kerala’s best hill stations, followed by Munnar, Rajamala and Nalliyampathy. The beautiful hill region is surrounded by evergreen forest, nearby Pookode Lake and Karapuzha Dam. Its pleasant climate is best for coffee and tea growing, so it is also known as Kerala Coffee County.
Robusta and Arabica are the main cultivated coffee varieties in this region. The area of Malabar is known for its beautiful hills, green valleys, and cold climate that make it one of the best places for flora and fauna.
Tamil Nadu’s tiny and young hill station is located in the Salem District. Yercaud is situated in the Shevaroys range of hills in the Eastern Ghats and got its name because of the forest close to Lake Forest.
Cold environment and peaceful Yercaud Valley is regarded as India’s best coffee forests. Other places in Tamil Nadu are Nilgiris District, Connor, and Kodaikanal, famous for coffee plantations in India, and the Nilgiris District is also renowned for tea cultivation.
Araku is a hill station in Andhra Pradesh district of Visakhapatnam, in India’s Eastern Ghats, inhabited by various kinds of tribes. Coffee Plantation in Araku is known for the brand of organic coffee from its first tribal growers. The coffee-growing industry is secondary here, as the tribal cultivates pepper and rubber all around the province.
The beautiful Araku valley is surrounded by the mountains of Galikonda, Raktakonda, Sunkarimetta and Chitamogondi, and the reserved forest of Ananthagiri and Sunkarimetta. Andhra Pradesh’s other coffee producing regions are Chintapalli, Paderu, and Maredumilli, in India’s Eastern Ghats. Coffee is also famous in the region from Visakhapatnam to East Godavari Districts.
Daringbadi is known as Orissa’s Kashmir, situated in Orissa’s hill area and the state’s only hill station. Daringbadi is one of India’s youngest coffee-growing areas preceded by Chintapalli, Himachal Pradesh, and Assam.
This magnificent area has thick pine jungles, long coffee gardens, spectacular mountains, and stunning valleys to deliver. Daringbadi offers a cold climate, the beauty of the scenery, deep dense forest, tribal people, and friendly surroundings, which are still unexplored and unspoiled. Orissa district of Koraput is another location known for most traded commodities, the productive coffee grove.
FUTURE OF COFFEE PLANTATION BUSINESS IN INDIA
Coffee grown in India’s forests, the world’s sixth-largest coffee producer, is cultivated in the Western Ghats under dense canopies — a UNESCO World Heritage site and one of the most critical biodiversity hotspots in the world.
India produced 5.5 million bags of coffee during the 2016–17 season. Much of the country’s coffee is grown in the three southern states of Karnataka, Tamil Nadu, and Kerala, followed by Andhra Pradesh and Telangana, which until recently had been part of Andhra Pradesh.
Nearly 65 percent of total output comes from Karnataka, while Tamil Nadu contributes about 15 percent, and Kerala accounts for about 20 percent.
India is renowned for its exceptional coffee grown in the shade. The two commercially significant coffee varieties, Arabica and Robusta, are grown under heavy shade, which is believed to contribute to the coffee’s flavor profile, along with other influences including the monsoons, spices that develop around coffee, and the various fauna that thrive alongside it.
The mixture of vegetation prevents soil erosion within this biodiversity growing climate, and fallen leaves decompose to become rich humus, thereby preserving the forest ecosystem. The Arabica grown in Indian Rainforest is unique in its properties and is sought after for its flavor and characteristics, as these are grown at higher altitudes.
The industry is gradually moving towards sustainable farming practices, and more estates have become Rainforest Alliance-UTZ and Fairtrade accredited. Organic coffee is also of growing interest, especially for coffee grown on tribal land, which accounts for about 42 percent of India’s coffee area. Coffee is handled in those areas in conventional ways, mostly organically.
Most of India’s coffee exports go to Europe, Japan, and the Middle East, although many global customers remain unaware of the complexities and prices that excellent Southern Indian coffee can bring. Only when packages are shipped from India to the destination country is the term “Coffee of India” used as an indication of origin at the export level.
Indian coffee continues to see good demand from Italian buyers, especially the Robusta parchment and cherry, said Ramesh Rajah, president of India’s Coffee Exporters Association.
Rigid consistency and grade classification monitoring by India Coffee Board, a government agency of India, ensures that the finest and most aromatic of India’s hand-picked coffee beans are exported.
Encouragement for the local coffee industry comes not only from India’s Coffee Board but also from non-profit organizations such as India Coffee Trust working to improve and enhance these efforts.
The India Coffee Trust is the result of a general agreement among Indian coffee industry stakeholders to create a non-profit organization to discuss and promote Indian coffee, “said Bhandari. The Indian Coffee Collective supports the Trust to establish a broader global outreach and awareness of India’s excellent Shade Grown coffees. Together, our primary mandate is to promote shade-grown coffees in India, and the humble brown bean is a long-standing history.
The never-ending story of coffee and its lovers in India!! There’s love in every sip you take.