Geographical Indications for Kodagu Coffee – A Socio-economic Feasibility Analysis

The feasibility of Geographical Indications (GI) for the Kodagu coffee has been explored, as the coffee is grown under shade and unique conditions in the midst of rich biodiversity; as a result, the productivity of coffee turns out to be relatively low. The results have indicated that productivity of coffee is lower (6 q/ acre) when grown under high shade and native tree cover than under low shade condition (8.9 q/acre). Although, the difference in cost of cultivation between the two shade conditions is not significant, the net gain is to the tune of Rs 10.40/kg for the planters growing under low shade and exotic trees cover. The net loss has been estimated to be around Rs 15.50/kg for the planters growing under high shade and native trees cover. The marginal loss in the productivity of coffee due to shade is not directly reimbursable through the shade benefits. Hence, the coffee planters need to be compensated through a price premium for their products produced under rich biodiversity, thus requiring the GI that ensures quality and price.