1 | P a g e

DRAFT

CHIKMAGALUR DISTRICT

Export Action Plan Under the “District as Export Hub Initiative “of the Ministry of Commerce, GOI

KARNATAKA STATE

CHIKMAGALUR DISTRICT

2 | P a g e

CHIKAMAGLUR DISTRICT

Karnataka State

DISTRICT EXPORT ACTION PLAN

Introduction & General Characteristics of the District:

The District Chikkamaglur is situated in the south-western part of the state along the beautiful

green western ghats . Chikmagalur, the headquarters of Chikmagalur district, is 251

kilometres (156 mi) from the state capital of Bangalore, and is surrounded by the Chandra

Drona hills and dense forests. The birthplace of Indian Coffee is Chikmagalur. It is famous

for its Coffee cultivation and is known as the coffee land of Karnataka.

B. The district falls under the Mysore Division of Karnataka. It is divided into two Revenue

Sub-divisions, Chikmagalur Sub-Division and Tarikere Sub-Division. Chikmagalur Sub-

Division comprises the taluks of Chikmagalur, Koppa, Mudigere and Sringeri whereas the

Tarikere Sub-Division comprises the taluks of Tarikere, Kadur, Ajjampura and

Narasimharajapura.

C. A large area of the district is “ Malnad “ i.e. a largely forested hilly region of the heavy

rainfall. The mountain range contains Mullayanagiri, which is the highest peak in Karnataka.

The Kundremukh range is 95 km southwest of Chikmagalur so named¬ because of the

unique shape of the Kudremukh peak. Situated at 1,894.3 meters above sea level Kudremukh

is rich in iron ore deposits. Natural Resources include Boxite, China Clay, Iron Ore, Quartz,

Building Stone, and Sand

D. With varied agro-climatic conditions and fertile soil conditions , the district offers huge

potentials for various food processing industries . Approximately 35% of the MSME’s are

agro based. Famous for coffee. Nearly 600 food processing units are there with 2 food

processing clusters located in Sakrayapatna. The Krishivigyan Kendra and other technical

institutions present provide knowledge support to farmers. 141 veterinary provide for

maintenance of cattle and poultry health. Access to forest, unconventional fodder crop, large

crops, has warehouse of 6000 M T capacity are some of the key enablers for the district.

3 | P a g e

2. TOP TEN CROPS –CHIKMAGALUR DISTRICT(2019-20)

SL.No. Crop Irrigated Area Unirrigated Area Total area

1. COFFEE 12859 80146 93005

2. ARECANUT 50630 12958 63588

3 COCONUT 25067 29123 54190

4. BLACK PEPPER 8650 31872 40522

5. RAGI 55 33568 33623

6. MAIZE 0 15986 15986

7. RICE 2562 11838 14400

8. SILVER OAK 16 10535 10551

9. ONION 962 6994 7956

10. POTATO 438 3907 4345

3. Infrastructure:

• Industrial Estates: There are two industrial estates in Chikmagalur district, one located near Chikmagalur town and the other near Birur in Kadur Taluk. The Chikmagalur Industrial Estate is spread over 13.20 acres (53,400 m2) of land where the one at Birur is spread over 11.1 acres (45,000 m2)

• Industrial Areas: ). Karnataka Industrial Area Development Board (KIADB) is also developing an Industrial Area of over 145 acres (0.59 km2) near Amble village of Chikmagalur taluk.

• Clusters:

a. Food Processing cluster, Sakrayapatna, Chickmagalur district: DSR approved and Soft interventions approved by GOI for 5.25 lakhs, out of which GOI as sanctioned 4.5 lakhs and rest is from SPV.

b. Wodden Furniture cluster, gavanahalli, Chickmagalur district: DSR sanctioned by State and forwarded to DCMSME.

c. Karnataka Council for Technological Upgradation (KCTU), Adichunchanagiri Institute of Technology, Chickmagalur – Product: “Development of Technology to produce and use of Bio Fuel”.Automobile

4 | P a g e

repairs & machine shop & Auto machines, Kadur, Chickmagalur district: DSR sa

d. M/s Ankura Food Processing Cluster, Sakraypatna, Kadur Tq. Principal products manufactured :- Jackfruit value added products Thrust areas- Jack fruit based pickles nctioned by State and forwarded to DCMSME.

• Cold storage facilities: Under Kappec MCF cold storage, Kadur road,chikkamagalur (Capacity MT 800), M/s Anivarya Agriculture and Allied Services Pvt. Ltd., Site no. B26, APMC Yard, NH 206, Kadur, Chikkamagalur – (Capacity MT 1000)

• Important Institutes:

a. The Central Coffee Research Institute, established during 1925, is located in the heartland of coffee tracts, near Balehonnnur in Chikmagalur district of Karnataka

b. College of Horticulture, Mudigere

4.Developing district as export Hub : The DLEPC meeting

The first initiative meeting of the DLEPC was held on 14.2.2020chaired by the DC Chikamagalur on. Major products identified for exports from the district are Coffee,Pepper and Cardomum.

5. Main Products with export potential Identified :

1. Coffee : Main product and part of cluster under Agri Export Policy (AEP) from the district

2. Pepper: Part of cluster under Agri Export Policy (AEP) from the district.

3. Cardomum

4. Vanilla and its value added products

5. Arecanut and its value added products

6. Jackfruit and its value added products

7. Vegetables, Fruits such as Banana Sapota ,Medicinal Plants and other processed agricultural products/ food products

8. Tourism

Coffee

In India, coffee is cultivated in about 4.54 lakh hectares by 3.66 lakh coffee farmers of which 98% are small farmers. Coffee cultivation is mainly done in the Southern States of India: Karnataka – 54% Kerala – 19% Tamil Nadu – 8%.

5 | P a g e

The districts Chikkamaglur , Kodagu and Hassan are the main Coffee Districts of Karnataka

Area and Production of Coffee in the State*

District

ARABICA ROBUSTA

Bearing Area (Ha)

Prodn in M.T.

Yield in Kgs/Ha

Bearing Area (Ha)

Prodn in MT.

Yield in Kgs/Ha

Chikkamagalur 49251 33500 680 38212 44350 1160

Hassan 23557 17500 743 13161 13420 1019

Kodagu 26889 16900 628 75174 93830 1248

State Total 99697 67900 681 126547 151600 1197

• Source: Coffee Board

Climate in the districts of chikkamaglur / Karnataka suitable for coffee, Transport well connected. Arabica coffee (the premium variety) grows here in high volumes, when compared to other regions. Robusta is less here. But Indian coffee cannot compete with Brazilian and Columbian coffees in terms of Quantity, Quality and Price.

A large number of labourers are employed in this plantation industry.

6 | P a g e

Requirement of labour in Coffee Industry is given below:-

Interesting Facts about Chikmagalur Coffee

The history of Chikmagalur coffee is as follows. The “land of coffee” is famous as one of the best beautiful hill stations in Karnataka State. The credit for the growth of coffee plantations goes to the Sufi saint, Baba Budan. Another name – Hazarat Shah Janab Allah Magatabi. He brought the seeds from Arabia and planted them in his garden. His shrine, even today stands atop the hills and the hills get the name from him – Baba Budan Giri. In ancient India, Chandra Drona was the old name of Baba Budan Hills. If you are a coffee lover, you cannot resist the temptation to go to Chikmagalur. You find many of the resorts in Chikmagalur among coffee plantations. There is no need for you to go for miles to seek or smell fresh coffee beans. There is a coffee museum and training centre comes from the parent body, Coffee Board of India. It enrich your knowledge of Indian coffee, cultural practices, technology, R & D. Of course, you get valuable information on coffee seeds grown in Chikamagaluru. The coffee grown in Chikamagalur is of two types – Arabica and Robusta. In the year 2017 to 2018, the place products 35, 900 metric tonnes of Arabica and 48, 110 tonnes of Robusta. The State produced 75,300 MT of Arabica and 176,460 MT of Robusta. The Indian contribution to the entire globe stands at 103,100 MT of Arabica and 247,300 MT of Robusta.It is a wonder that Chikamagalur produces both Arabica and Robusta coffee varieties. The Arabica coffee is famous for their delicate flavor. And combined with a sharp

7 | P a g e

sweet taste, they are more preferred on the international scene. They grow at high altitudes. The Robusta coffee, the other type, have a strong taste. In fact, you feel the taste of peanuts after sipping the coffee.This variety, you can grow at low heights.

CENTRAL COFFEE RESEARCH INSTITUTE ( CFTRI) BALEHONNUR Chikkamaglur District

The Central Coffee Research Institute (CCRI) is a premier organization in the frontier areas of modern coffee research which celebrated her Platinum Jubilee of existence in the year 2000. CCRI is recognized as an institute engaged in scientific research by the Department of Science and Technology, Government of India. Central Coffee Research Institute is engaged in intensive and advanced coffee research in the disciplines of Plant Breeding and Genetics, Coffee Agronomy, Soil Science & Agricultural Chemistry, Plant Physiology, Plant Pathology, Entomology, Post Harvest technology, Coffee Biotechnology and Coffee Quality.

Apart from the research divisions located at its main campus, an exclusive Plant Tissue Culture & Biotechnology division established in Mysore is involved in conducting bio-technology and molecular biology studies to supplement/ complement the conventional breeding programs in developing high yielding, pest and disease resistant varieties. The Quality Control Division stationed at Coffee Board’s Head Office in Bangalore has been actively collaborating with other research disciplines in upgrading the quality of coffee in the cup. Around 130 scientific personnel assisted by technical staff are involved in carrying out research. The centre is continuing its mission of pursuing a high quality basic and applied research in chosen areas of plant breeding, molecular biology, soil science, plant biochemistry, pest and disease related research, post harvest technology, water pollution and other application oriented work for field application. CCRI has well equipped modern laboratory facilities and a central library with vast collections of books and periodicals on coffee in addition to other plantation and agricultural crops. Besides, there is a well established training section for coffee growers, bankers, horticulturists, estate managers, supervisory personnel and extension officers of the Coffee Board. The training section is recognized by UNDP and FAO to impart training on coffee culture to foreign nationals too. So far, personnel from Ethiopia, Nepal, Sri Lanka, Kenya, Vietnam and M/s.Nestle International, Singapore have been trained besides Indian growers and others in the coffee chain. Coffee Board : The Coffee Board is working under the administrative control of the Ministry of Commerce & Industry, Department of Commerce, Government of India is headquartered in Bengaluru is engaged in the promoting the quality production of Coffee and facilitating the marketing including exports.

8 | P a g e

Coffee Statastics:

9 | P a g e

10 | P a g e

Statistics on Coffee Production in Major States/Districts Of India(in MTs) No.of Holdings

Name of the Region

2016-17

<10 >10 Total

Chikmagalur 20513 1338 21851

Hassan 13751 387 14138

Madikeri 21492 245 21737

Virajpet 21204 231 21435

Total for Karnataka 76960 2201 79161

Kerala 77370 275 77645

Tamil Nadu 17656 350 18006

Total for Traditional Areas 171936 2826 174762

Non Traditional Areas 167370 26 167396

NER Region 10477 9 10486

Grand total 349783 28614 352644

11 | P a g e

State/District

Post Monsoon Estimate 2019-2020

Crop Estimate 2018-19

Arabica Robusta Total Arabica Robusta Total

Karnataka

Chikmagalur 31,350 38,550 69,900 33,500 44,350 77,900

Kodagu 17,500 87,975 105,475 16,900 93,830 110,730

Hassan 14,150 13,050 27,200 17,500 13,420 30,920

Sub total 63,000 139,575 202,575 67,950 151,600 219,550

Kerala

Wayanad 0 55,075 55,075 0 58,450 58,450

Travancore 950 8,275 9,225 1,030 8,225 9,255

Nelliampathies 1,000 1,525 2,525 1,180 1,550 2,730

Sub total 1,950 64,875 66,825 2,210 68,225 70,435

Tamil Nadu

Pulneys 7,550 355 7,905 6,900 325 7,225

Nilgiris 1,325 3,475 4,800 1,365 3,760 5,125

Shevroys (Salem) 4,700 50 4,750 4,150 65 4,215

Anamalais

(Coimbatore)

625 440 1,065 825 375 1,200

Sub total 14,200 4,320 18,520 13,240 4,525 17,765

12 | P a g e

Non Traditional

Areas

Andhra Pradesh 10,510 40 10,550 10,850 50 10,900

Orissa 660 0 660 650 0 650

Sub Total 11,210 40 11,210 11,500 50 11,550

North Eastern Region 80 90 170 100 100 200

Grand Total (India) 90,400 208,900 299,300 95,000 224,500 319,500

Coffee under GI Geographical Indication:

The Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry, Government of India has awarded Geographical Indication (GI) recently to five varieties of Indian coffee. They are:

a. Coorg Arabica coffee is grown specifically in the region of Kodagu district in Karnataka.

b. Wayanaad Robusta coffee is grown specifically in the region of Wayanad district which is situated on the eastern portion of Kerala.

c. Chikmagalur Arabica coffee is grown specifically in the region of Chikmagalur district and it is situated in the Deccan plateau, belongs to the Malnad region of Karnataka.

d. Araku Valley Arabica coffee can be described as coffee from the hilly tracks of Visakhapatnam district of Andhra Pradesh and Odisha region at an elevation of 900-1100 Mt MSL. The coffee produce of Araku, by the tribals, follows an organic approach in which they emphasise management practices involving substantial use of organic manures, green manuring and organic pest management practices.

e. Bababudangiris Arabica coffee is grown specifically in the birthplace of coffee in India and the region is situated in the central portion of Chikmagalur district. Selectively hand-picked and processed by natural fermentation, the cup exhibits full body, acidity, mild flavour and striking aroma with a note of chocolate. This coffee is also called high grown coffee which slowly ripens in the mild climate and thereby the bean acquires a special taste and aroma.(The Monsooned Malabar Robusta Coffee, a unique specialty coffee from India, was given GI certification earlier)

Coffee as Cluster product under Agri Export Policy (AEP) :

13 | P a g e

• As part of the Agriculture Export Policy, Coffee is one of the unique product-cluster from the following districts from Karnataka State has been identified for export promotion :-

Districts:- Chikmagaluru, Kodgu, Hassan.

• In the Action Plan & Strategy to Implement Agriculture Export Policy (AEP) of Govt. Of India in Karnataka, the Karnataka State Agricultural Produce Processing and Export Corporation Ltd,,(KAPPEC) has identified the Area and production of selected Horticulture commodities in respect of Coffee as below:-

COFFEE 2017-18

DISTRICTS OF KARNATAKA

ARABICA

ROBUSTA

Bearing Area

(Ha)

Prodn in Mts

Yield in kgs

Bearing Area(Ha)

Prodn in Mts

Yield in kgs

CHIKKMAGALUR 49251 33500 680 38212 445350 1160 HASSAN 23557 17500 743 13161 13420 1019 KODAGU 26889 16900 628 75174 93839 1248 TOTAL 99697 67900 681 126547 151600 1197

In view of the above steps taken by Government of Karnataka, as a part of Agri Export Policy, Coffee is the main product identified for potential export product from Chikmagalur district.

Comprehensive database on existing exporters in the District:

Sl. No. Firm name Location Product

1. M/s. Almoeeza Trading Estt Chikmagalur Coffee Beans

14 | P a g e

2 M/s. GemCOffee, Chikmagalur Coffee Beans & Instant Coffee

3 Jayabharathi exports Chikmagalur Coffeebeans

4 M/s. Kaapi Royale Chikmagalur Coffee Beans

5 M/s. Kings Coffee Chikmagalur Coffee

6 M/s. Mudremane Coffee Cures Chikmagalur Coffee Beans

7 M/s. M.A. and Sons Chikmagalur Coffee Beans

8 M/s. Olam Exports IndiaPvt.Ltd Chikmaglur Coffee Beans

9 M/s. Panduranga Coffee Works Filter Coffee

10 M/s. Prajetha Spices Chikmagalur Black Pepper, White Pepper and Ginger

11 M/s. Prashob Granite Exporters Chikmagalur Granite Slabs, Tiles

12 M/s. Srarathi Coffee Curing Works Chikmagalur Coffee Beans

13 M/s. SSC Vanilla Processing Unit Chikmagalur

Cured Vanilla Beans, Vanilla Powder, Vanilla Sugar, Vanilla Paste, Vanilla Tea, Vanilla Coffee

14 M/s. Sunshine Traders Chikmagalur Coffee Bean Products, Coffee Bean Producing Machine

15 M/s. Vardhan Enterprises Chikmagalur Agriculture Beans, Coffee Beans, Tea Leaves, Filter Coffee Powder, Roasted Coffee Beans

16 M/s. Ylligodigi Associates Chikmagalur Coffee Beans

17 M/s. M.M. Industries Chikmagalur Coffee Beans

18 M/s. Bharath Matha Coffee Works Chikmagalur Coffee Beans

19 Spice Culture Chikmagalur – 577139

C0ffee

20 C.N.coffee Trading Co Chikmagalur-577 101 Coffee

15 | P a g e

21 Sargod Trading Co Chikmagalur-577 101 Coffee

22 Shade Coffee Chikmagalur-577101 Coffee

B) SPECIALITY COFFEE

Speciality Coffee founded by M/s. Jayanthi Coffee is a peculiar coffee available only in Chikmagalur.

There are 500 different verities of Special Coffee. Special coffee is a term for the highest grade of coffee available, typically relating to the entire supply chain, using single origin or single estate coffee. The term was first used in 1974 by Erna Knutsen in an issue of Tea & Coffee Trade Journal.

By roasting lighter than many in the past have dared, specialty roasters are able to unlock and bring out the unique flavors that reflect the coffee's origin. Soil type, humidity, plant health, and a variety of other variables determine a coffee's flavor.

• The earlier term "specialty coffee" was coined in 1974, and refers narrowly to high-quality beans scoring 80 points or more on a 100-point scale.

• The SCAA reports that 37% of the coffee in Americans' coffee cups is specialty grade coffee. A cup of coffee is tested by an employee of the SCAA called a “cupper”. These cuppers are trained to identify specific flaws in the coffee; one cup is tested at least 15 times by different cuppers.

• There are more than 500 different types of Speciality Coffee available with M/s. Jayanthi Coffee, Chikamaglur.

16 | P a g e

Coffee is principal agricultural produce from the state that could make it big in international markets but coffee as generic commodity has very little potential for both, growers from increasingly finding it unviable to grow coffee and sellers who are unable to get prices in the international markets. More importantly Karnataka which accounts for 70 percent of the coffee grown in India in spite of the amazing support it offers to growers is unable to increase the revenue for the state or for growers or sellers. Natural coffee has hundreds of flvour notes and these could be enhanced by strain grown, the cultural operations , the location and more importatntly post harvest processing and roasting. We can cater to the billions of Coffee connoissioers worldwide and benefit the state growers and the entire coffee chain by selling value added coffee. India is one of the few countries in the world where the coffee is grown under shade in an ecosystem that sustains the natural and native flora and fona. The world of coffee has done considerable research travelled world over and have been certified by the Speciality Coffee Association of America (SCAA). The extensive research that they have done over years in their world class laboratory and taken it forword and processed in their High Technology Production Facility has enabled them to upgrade coffee that they used to sell at Rs 600 a kg to Rs 10000 per kg now. The sunshine enterprises and world of coffee are eager to take this forward for benefit of all. They dream to get chikamaglur on the world coffee map.

17 | P a g e

18 | P a g e

19 | P a g e

20 | P a g e

21 | P a g e

22 | P a g e

Suggestions received:

Some suggestions received for increasing exports of coffee.

1. Infrastructure for good sourcing, sorting and processing required within the district.

2. Pulping is a process through which the outer skin of coffee berries is removed. Once the outer skin is removed, the resultant beans is called Parchment beans which fetches a higher value.Since the land, machineries for pulping are not there with all / not affordable, many small growers just dry the berries – which become black cherries - and fetches low value. If the government can set-up Community Pulping Centres (plus Effluent Treatment Plants) in the area, it would be of great help to all growers. Pulping adds value to the product.

3. Arabica parchments will have a better export value. 90% of coffee growers are small growers and are unorganized. They depend upon traders, and hence they do not have any control on pricing. They normally take ‘crop loans’ from Co-operative banks and the deadline for payment falls on 31st March every year. So the harvest accumulated by Jan-Feb-March period need to be sold off forcibly without choice / without holding back. Many times they find it difficult to repay the loans. Relaxation in repayment of crop loans may be considered.

4. For roasted coffee/ roasted coffee powder phytosanitory certification may be exempted ( for green coffee it is ok)

5. Suggestions from Coffee Board

(As indicated in Strategy paper prepared by KAPPEC GOK to implememt Agri Export Policy GOI) :

The Coffee Board is working under the administrative control of the Ministry of Commerce & Industry, Department of Commerce, Government of India is headquartered in Bengaluru is engaged in the promoting the quality production of Coffee and facilitating the marketing including exports. During the stakeholders’ meeting and also with the interaction had with Coffee Board officials, following specific actions are suggested by them to increase the export of Coffee from the State.

1. Establishment of a custom hire centre to provide machineries to coffee farm operations one each at identified cluster districts of Chikkamagaluru, Hassan and Kodagu by dovetailing State Government scheme with a fund requirement of Rs. 5 crores each totaling to Rs.15 crores.

23 | P a g e

2. Interest subvention @ 5% on crop loans to encourage intensive management of coffee plantations which will greatly help in improving the productivitywith a fund requirement of Rs. 3 crores per year totaling to Rs. 15 crores for 5 years for the identified coffee clusters.

3. To extend support for re-plantation of senile/unproductive plantations to increase production, productivity and quality of Coffee. The fund requirement would be Rs. 7 Crores per year totaling to Rs. 35 Crores for 5 years for the identified coffee clusters.

4. To organize digital media campaigns for the promotion of GI registered unique regional coffees in High value markets as well as traditional coffee markets. The fund requirement would be of Rs. 5 Crores per year totalling to Rs. 25 Crores for 5 years for the identified coffee clusters.

Infrastructure proposed in the strategy paper is as below:

Establishment of a separate warehouse for coffee with an exclusive area for fumigation, inspection and factory loading of coffee containers at Mangalore Port in collaboration with State Government and New Mangalore Port Trust (NMPT). The fund requirement of about Rs.10 Crores to be met by the NMPT and State Government.

Black Pepper :

• As part of the Agriculture Export Policy, GOI Pepper is one of the unique product-cluster from the following district of Chikkamaglur from Karnataka has been identified for export promotion

• In the Action Plan & Strategy to Implement Agriculture Export Policy (AEP) of Govt. Of India in Karnataka, the Karnataka State Agricultural Produce Processing and Export Corporation Ltd,,(KAPPEC) has identified the Area and production of selected Horticulture commodities in respect of BLACK PEPPER as below:-

COFFEE 2017-18

DISTRICTS OF KARNATAKA

Bearing Area

(Ha)

Prodn in Mts

Yield Mt/Ha

CHIKKMAGALUR 9465 3940 0.42

24 | P a g e

Shimoga 3084 1014 0.33 Uttar Kannada 1180 564 0.48 Dakshina Kannada 3122 635 0.20

Black Pepper is the second product identified for potential export product from Chikmagalur District.

A Spices Park is proposed for the benefit of Pepper Growers at Chikmagalur District and the work is under progress as informed by Spices Board/DIC.

Black Pepper the background : The MALABAR PEPPER variety has originated as chance seedling in the State of Kerala. MALABAR PEPPER was selected from the agro-climate condition of the said geographical indication. The area of production covers all the composite states comprised in the Malabar region of the erstwhile Madras Presidency, which in the present period covers the entire South India. This geographical areas comprise of Alapuzha, Palakkad, Pathanamthitta, Thiruvananthapuram, Thrissur, Wynad, Ernakulam,Idukki, Kannur, Kasaragod, Kollam, Kottayam, Kozhikode, Malappuram districts in Kerala State Dakshina Kannada, Davangere, Dharwad, Hassan, Kodagu, Bangalore, Mandya, Mysore, Shimoga, Tumkur, Udipi, Uttara Kannada, Chamarajanagar, Chickmagalur districts in Karnataka State Namakkal, Nilgiris, Coimbatore, Pudukottai, Salem, Thanjavur, Theni, Tirunelveli, Vellore, Krishnagri, Dindigul, Erode, Kanniyakumari districts in Tamil Nadu State "MALABAR PEPPER �� is classified under two grades- garbled and un-garbled. The garbled variety is black in colour nearly globular with a wrinkled surface, the deepest wrinkles forming a network in the dried fruit. The ungarbled variety has a wrinkled surface and the colour varies from dark brown to black. It (Piper nigrum) is a flowering vine in the family Piperaceae, cultivated for its fruit, which is usually dried and used as a spice and seasoning. The fruit, known as a peppercorn when dried, is a small drupe five millimetres in diameter, dark red when fully mature, containing a single seed. Production of Pepper India

Production of Black Pepper in Major States - Area Hec Prodn - Tons 2015-16 2016-17 2017-18 2018- Area Prodn

.

Area Prodn.

Area Prodn.

Area Prodn.

KARNATAKA 34990 23000 37750 31000 41380 35000 41381 21000 KERALA 85948 21000 85210 20000 85140 22000 84786 17000 TAMIL NADU 4349 1500 4910 2000 5270 2000 5638 3000 Total (including others)

131790 48500 134280 57000 139487 64000 138929 48000

25 | P a g e

Recent trends in Black Pepper production Karnataka has overtaken Kerala and become the country's leading pepper producer, accounting for 45% of the total production. The recent production data puts Karnataka ahead of Kerala for the second year running with Karnataka accounting for more than 50 per cent of the production. Of the estimated all-India pepper production of 64,000 tonnes in 2017-18 , Karnataka’s share was 35,000 tonnes while that of Kerala was 22,000 tonnes during the period. The rising prices of pepper and fluctuation in coffee rates as reasons to incentivise farmers in Karnataka to take up pepper as an adjunct crop. Moreover, Karnataka planters have been taking lot of initiatives in stepping up pepper production and have set up plans to adopt the Vietnamese method of exclusive mono-crop of pepper cultivation. Chikamagalur district is taking lead in this direction.

BLACK PEPPER CLUSTER Black pepper in Chikmagalur district: Black pepper (Piper nigrum L.) (Family: Piperaceae) is a perennial vine grown for its berries extensively used as spice and in medicine. India is one of the major producer, consumer and exporter of black pepper in the world. Black pepper is a plant of humid tropics requiring high rainfall and humidity. The hot and humid climate of sub mountainous tracts of Western Ghats is ideal for its cultivation. It grows successfully between 20° North and South latitudes, and, up to 1500 m above sea level. The crop tolerates temperatures between 100 and 40°C. The black pepper growing tracts in the West Coast of India include (1) coastal areas where black pepper is grown in homesteads (2) midlands where black pepper is extensively cultivated on a plantation scale and (3) hills at an elevation of 800-1500 m above sea level, where the crop is mostly grown on shade trees in coffee, cardamom and tea plantations. Among districts in Karnataka, Chikmgalur is the one of the major pepper growing district where pepper is mostly grown on shade trees in coffee and arecanut plantations and in homesteads. Black pepper is grown in about 9371 ha with a production of 4044 tonnes annually ( 2017-18) in the Chikmagalur district. The area and production data of black pepper in Chimagalur district for 2017-18 taluk wise is given below (Source: Horticulture Deptt., Chikmagalur)

Sl. No.

Name of Taluk

Area (ha) Production (Tonnes)

Productivity (Tonnes/ha)

1 Chikmagalur 1700 510 0.30 2 Koppa 1335 279.51 0.21 3 Mudigere 3556 1173.83 0.33 4 N R Pura 650 1950 3.00 5 Sringeri 1965 78.966 0.04 6 Tarikere 165 52 0.32

26 | P a g e

7 Kadur Total 9371 4044.31 0.43

There is scope for increasing the productivity in the district by following proper agricultural practices with timely irrigation schedule and required disease control and nutrient management measures.

Under the strategy paper proposed by GoK for implementation of Agri export policy of GOI for pepper cluster, the infrastructure proposed is as follows:

It is proposed to establish state of the art cleaning, grading, steam sterilization and packing unit one each in Chikkamagaluru and Uttar Kannada (Sirsi) at a cost of Rs. 15 Crore each. The total cost would be Rs. 30 Crores. It is also proposed to establish a scientific auction centre in Chikkamagalur on the lines of small cardamom in order to facilitate for the transparent price discovery system for this high value crop. The cost for this auction centre would be about Rs. 5 Crores. Hence the total cost for the cluster would be Rs. 35 Crores.

Cardomum : Chikkamaglur is one of the important districts of karnataka growing cardomom besides Kodugu district. Karnataka has a share of 5.94 percent in cardomum production ( Kerala 66 percent Sikkim 17 percent). It is mainly grown as intercrop in the plantations in the district. Pomogranate, and Gherkins: The district is part of proposed Clusters along with some other districts for promotion of exports for Pomogranate , Gherkins apart from Coffee and Pepper proposed by Gok under action plan/strategy for implementation of Agriculture export policy of Government of India Vanilla and value added products:

27 | P a g e

Vanilla is a Spice produced from the Chikmagalur region. Value added products of Vanilla are Vanilla Powder, Vanilla Sugar, Vanilla Paste, Vanilla Tea, Vanilla Coffee. There is a scope for export of these products from Chikmagalur.

Information gathered from one of Vanilla Exporter from Chikmagaluru that for the last 2 to 3 years, they are not able to export Vanilla due to non-availability of raw material due to diseases affected to Vanilla Plant.

In order to keep away from diseases affected to Vanilla Plant, it is suggested to promote Tissue Culture, as a inter-crop in Areca Nut Planations and Coffee plantations, using organic method, with the assistance of Agriculture and Horticulture Department.

Jack fruit / Vegetables/ Banana/ Sapota :

It is one of the largest producer of vegetables in the state. They have the option to export all available fruots and vegetables as frozen or as processed product. Jack fruit is abundantly available in the district which one can have value added or vacuum dried products. Banana amd sapota are also in large quantity and they can have a plan for value addition to it. A common cold storage facility centres in the district would also be helpful in storage of fruits and vegetables. One of the example is Karanth foods , a young engineer turned entrepruner from Shringeri of the district ventured into vacuum dried vegetables and jack fruit chpis under the brand name Fruittreat and proposes to venture into exports from domestic market.

28 | P a g e

Tourism: ( Source District Adminstration website)

Places of Interest at Chikkamgaluru Chikmagalur District offers a wide variety of places of tourist interest. It has Lofty hills, swift flowing and meandering rivers and brooks, pilgrim centers of various faiths, evergreen forests, a wide variety of bird life, a variety of crops ranging from plantations to dry crops and folk traditions. Thus, Chikmagalur has every thing to offer, be it Adventure tourism, ecotourism, pilgrimage tourism and culture tourism. Following are some tourist attractions for the Tourists to enjoy their journey in the district. Horanadu Nestled in the midst of evergreen hills is Horanadu. It is about 10 kms from Kalasa and has the temple of goddess.Sri Annapoorneshwari. The place attracts devotees throughout the year. Accommodation for night stay is and free food is offered by the temple authorities. Chikkamagaluru City The city is a fantastic dividing line between the malnad and maidan regions of the District. To the west of the city are hills with coffee plantations and low level paddy fields. The people of the city are gentle and hospitable. To the north of the city on the way to Mullayyanagiri, There is a Ratnagiri Bore – Mahatma Gandhi park, a must see place especially for children. It has Toy train, a musical fountain and play items nestled in green surroundings. Atop the hillock, there are two temples. Two Kilometers from this park to the north, is the beautiful Golf course for the golfers. Tourists can also visit Coffee Museum situated behind Zilla Panchayat Office. About two kms. from Chikmagalur is Hiremagalur where Sri Kodandarama Swamy Temple is situated. This temple has been made famous by “Kannada Poojary” Sri Kannan. It is supposed to have been the first Temple in South India dedicated to Sri Rama. Sringeri It is a famous pilgrim centre situated on the banks of the river Tunga. It is about 100 kms. from Chikmagalur. The Sri Sharada Peetha here is supposed to have been established by Adi Shankaracharya the proponent of Advaita Philosophy. Vidyashankara Temple built here is a combination of Chola, Dravida, Nagara, and Chalukya styles and stands on a plat form of 3ft. Sri Sharadamba Temple is another major temple worth visiting. Accommodation for overnight stay and free food is offered to the devotees though out the year by Peetha. The sacred fishes in the river are an attraction to both young and old. Rambhapuri Peetha Situated on the western bank of the river Bhadra, this place has the Rambhapuri Peetha, one of the Pancha Peethas of Veershaivas. It is about 50 kms from Chikmagalur and has a tradition of more than 1500 years. The temple of Veerabhadra has rare images of

29 | P a g e

Veerabhadra and Bhadrakali. Free accommodation and Dasoha are offered throughout the year to the devotees by Mutt. Near by is Segodu where a Coffee research station run by the Government of India constantly evolves new varieties of coffee. Kalasa About 90 kms from Chikmagalur is Kalasa in Mudigere Taluk. Travelling on K.M. Road upto Kottigehara, one has to take a deviation to the right to reach this place. The journey becomes tireless as the road passes through coffee, Tea and cardamom Plantations. Kalasa is also called “Dakshina Khasi”. It has Kalaseshwara Temple. The landscape around is enchanting and one can have the view of the surrounding hill ranges, peaks and eat out at Kalasa View Point. Bababudangiri/Dattatreya peetha To the north of the city is a hill range called Bababudangiri. It has many peaks, the prominent being Mullainagiri and Deveerammana giri. Bababudan dargah/Dattatreya Peetha is a holy place to both Hindus and Muslims. A cave contains the tomb of Fakir Dada Hayaath mir Khalandar, and the sacred padukas of saint Dattatreya. Annually, Urs for Muslims and Dattajayanthi for Hindus take place at different times with devotion. Mullayyanagiri and Seetalayyanagiri These are the two places with shrines dedicated to lord Shiva.Mullayyanagiri is the tallest peak in Karnataka (6317 ft). They are at a distance of 24 and 20 kms from Chikmagalur, respectively. Two siddhas are supposed to have performed penance at Mullayyanagiri. There are few caves to the left of the temple where Siddhas are supposed to have performed penance. The temple is called Mullappa Swamy temple. A little below is Seetalayyanagiri where Seetala Mallikarjuna Temple is situated. Annual fair takes place here. A panoramic view of Chikmagalur city and surrounding areas can be enjoyed from Mullayyanagiri peak. This is a Trekker’s paradise also as large numbers of trekkers Iike this peak. Kemmannugundi / Krishnarajendra hill station It is a Hill Station with salubrious climate throughout the year. Its red soil is reflected in the name “Kemmannugundi”. This hill station is also named after Krishnarajendra Wadeyar IV, the then Maharaja of Mysore. It starts with the ‘Z’ point and is 4500 ft above sea level. It has a Rock and a botanical garden. It is managed by Department of Horticulture. It is about 55 Km from Chikmagalur and 35 kms from Tarikere. Angadi Situated 20 kms from Mudigere, this place is associated with Sala the founder of the Hoyasala dynasty. The temple of Sri Vasanthika Parameshwari here was the patron deity of the Hoysalas. Marle It is about 12 kms from Chikmagalur on Belur road with a deviation to the left at Hand post. Here, there are two temples of the Hoyasala period, standing side by side near an ancient tank. The temples built in 1150 AD are dedicated to Channakeshava and Siddheswara.

30 | P a g e

Belavadi Traveling further from Marle, situated about 30kms from Chikmagalur, is this place where a triple shrine (Thrikutachala) in which the images of Sri Venugopalaswamy, Narasimhaswamy and Veera Narayanaswamy are housed. The beauty of the temple is comparable to the Keshava temple at Somanathapura. There is an “Udbhava ganapathi” temple nearby. Magundi River Rafting Situated between Balehonnur and Kalasa is Magundi. Here river Bhadra flows slowly with intermittent rapids creating opportunities for river rafting, swimming and other Water Sports. Amruthapura About 8 kms from Tarikere is this place. The famous Amrutheshwara temple of the Hoyasala period has been under the supervision of the Department of Archeology. It has beautifully caved pillars and images of Narayana, Chammundeshwari, Kalabhairava, and Saraswathi, Agni and Saligrama are the two important sculptural features. It is believed that on Shivarathri day the first rays of the sun fall on the Shivalinga. Muthodi Forest Camp Muthodi is the most famous part of Bhadra Wildlife Sanctuary. It is 32 kms from Chikmagalur. The other parts of Bhadra Sanctuary areHebbe, Tanigebylu, and Lakkavalli. Muthodi is a natural forest with a variety of lofty mountains in the neighborhood. It is part of Bhadra Tiger Reserve and inhabits sizeable number of tigers. Besides, one can sight Elephants, Sambhar, gaurs, red Squirrels, spotted deers, barking deers and variety of birds. There is a nature camp run by forest department. There are facilities like tents, wooden cottages for stay and vehicle safari. Hebbe Falls Situated 8 kms away from Kemmannugundi, Hebbe Falls is a magnificent waterfall which gushes down 554 ft in two stages. Even though there is jeep service to this place, usually people trek to this place. Kalhatthi Falls It is 10 kms away from Kemmannugundi towards Tarikere. Here the water Cascades down 403 ft. The place has legendary association with sage Agasthya. A temple dedicated to god Veerabhadra by the side of the falls attracts devotees from nearby places. There is accommodation for over night stay. Annual fair takes place during month of March/April. People also trek to the top of falls from Santaveri. Khandya-Kudure Abbi It is about 45 kms from Chikmagalur on the Sringeri route. The very journey on this road is exhilarating. The winding road passes though hills and dales, running brooks, manicured Coffee and Tea plantations, and thick forests. Khandya has the temples of Markandeya and Janardhana, Markanda sage is supposed to have performed penance here. Orthodox Hindus offer ashes of their dear departed to the Bhadra River, for their salvation. The river Bhadra flows past the temple, dressing the hard stones into different shapes, by constant friction of the loose rocks. The shapes of the stones in the river have resemblance to the horses hoops which has made this place to be called “Kudure Abbi”.

31 | P a g e

ACTION PLAN:-

A) Resolve local problems of exporting community:-

Here are the main difficulties that exporters face when trading internationally and the best approach to have on them

a) 1. Geography and transportation.

b) 2. Payment methods.

c) 3. Different legal norms.

d) 4. Language barriers.

e) 5. Finding the right importer.

f) 6. Different customs and cultures.

B) Identification of bottlenecks for exports of potential products:-

1) Improving of infrastructure like maintenance of approach Road for logistic purpose with the help of local authorities;

2) Conduct awareness programme in all Taluks about the benefits covered under the FTP and its advantage;

3) Conduct awareness programme about RBI regulations and EXIM Policy through ECGC with the help of Leading Banks.

4) Providing of Lab facility in the District Headquarters for phytosanitary certification.

5) Providing of Lab facility for testing fungus infection in respect of Spices, which are stored for export purpose

C) Identifying training and development need of district industries and coordination of training with other departments:-

3. Training on Manufacturing Excellence

4. Training on International Product Certifications

5. Training on imbibing International Best Practices in Manufacturing specific products

32 | P a g e

6. Skill development in large scale manufacturing

D) Creation of subgroups for each identified potential export products involving stake holders like manufacturers, artisans, exporters of the identifiable products:-

Sub-Group: For export of Coffee:- Nodal Officer of Addl.DGFT, Bangalore, JD, DIC, Chickamagalur, Member from Coffee Board and a member from Leading Coffee industry.(Jayanthi Coffee, Chickamagalur)

E) Resolution, escalation and monitoring of issues in exports from the district identified products through regular meeting:-

Regular follow-up meeting are to be scheduled with DC-Chairman, DLEPC, JD, DIC(Member Secretary) at least once in a month

F) Dissemination of information through training, seminars, guest lectures, practical training, exchange visits with other districts of excellence

Core group consisting of KIA, DSIA, KCCI,CII and DIC and MSME Department to be formed for such activities

G) Act as one-point facilitator for export promotion at district level:-

Create a full fledged center under DIC with JD Industries as head and all District Associations for Industries, Trade and Commerce as members with a mandate to work on the activities of export promotion at the district level.

H) Liason with and report progress to State Level Export Promotion Committee(SLEPC)

The JD, DIC, should interact with the State Level Export Promotion Committee about briefing the Committee about the action plan and outcome of the DLEPC meeting in their respective District.

33 | P a g e

SUGGESTIONS 7. Chikmagalur District has a very high connectivity from all the places. The district has around 500 homestay facility, wherein mostly foreign nationals are occupying. These foreign nationals visit various tourist places nearby to Chikmagalur. One of the best among other is Belur Temple. Thus there is a scope for earning foreign exchange through Services.

8. Apart from Coffee, Chikmagalur also produces Agri and Horticulture products, Spices, Wooden Furniture. Hence international market for these products can also accelerate the foreign earnings.

9. Silver Oak Wood, one of the main crop in Chikmagalur Estates, in support of Coffee plantations. There is a good scope for diversification of export product, if these Silver Oak Wooden Furniture finds its market in abroad, as the raw material is available in plenty in Chikmagalulr. This to be explored.

10. In the upcoming Spices Park at Chikmagalur, facility of labs, storage and other logistics facility to be made available with the support of Spices Board and DIC, Chikmagalur.

11. Providing cold storage facilities for storage of vegetables fruits and processed foods.

CHALLENGES /SUGGESTIONS FACED BY COFFEE INDUSTRY ALREADY SUGGESTED

a. Establishment of custom hire centre to provide machineries to coffee farm operations one each at identified cluster districts of Chikkamagaluru, Hassan and Kodagu by dovetailing the State Government scheme. ; (Source: Coffee Board)

b. Interest subvention @5% on crop loans to encourage intensive management of coffee plantations which will greatly help in improving the productivity; ; (Source: Coffee Board)

c. To extend support for re-plantation of senile / unproductive plantations to increase production,

34 | P a g e

productivity and quality of coffee & also to organise digital media campaigns for the promotion of GI registered unique regional coffees in high value markets as well as traditional coffee markets; (Source: Coffee Board)

d. Establishment of a separate warehouse for coffee with an exclusive area for fumigation, inspection and factory loading of coffee containers at New Mangalore Port in collaboration with the State Government and NMPT.(Coffee Board)

e. If the government can set-up Community Pulping Centres (plus Effluent Treatment Plants) in the area, it would be of great help to all growers. Pulping adds value to the product.(Private Sources)

f. Relaxation in repayment of crop loans(Private Sources)

Thus main focus would be:

1. Addressing the needs of Coffee industry and focussing on the value added coffee like speciality coffee.

2. Speciality coffee

3. Pepper production , facilities for storage processing , value added products , training and export

4. Vegetables , Jackfruit, other fruits for export

5. Proceessed foods and organic foods, ayurvedic related products : Augment production/storage facilities testing labs inclusing training common facilities