Global potential for Araku Coffee is yet to be tapped fully

Ram Kumar Varma P, founder and CEO of Native Araku Coffee Pvt Ltd, Visakhapatnam-based startup with a promising future predicts a bright scope for the famous Araku Valley Organic Coffee, which has already made an impact in Paris, London and other overseas destinations. The coffee is also most sought-after in some airlines and five star hotels. Varma through his startup has plans to have a chain of retail outlets across the State to serve various types of coffee by popularising the coffee grown in the hills of Araku Valley in Visakhapatnam district, on the foothills of Eastern Ghats, by the tribals to help them get a remunerative price for the product savoured by many for its unique aroma and flavour.

"I founded Native Araku Coffee with a passion to add value to rural areas and tribal farmers," Varma told Bizz Buzz in and exclusive interview.

He has over two decades of experience and with a stint in IBM as Deputy General Manager choosing to become an entrepreneur

How organic coffee grown by tribals in Araku Valley and its neighbourhood is gaining popularity?

I want to say first about Araku coffee. India is a land of natural beauty known for its lush green forests, breathtaking mountains, magnificent valleys and some major rivers. The Araku Valley is one of such locations that is treasured by nature lovers and trekkers. It is surrounded by stunning waterfalls, verdant green fields and gushing streams. The unparalleled beauty of the hill station rising to a height of 4,000 feet is further enhanced by the thematic lighting, intoxicating the sensibilities of tourists. The heartening landscapes of Araku exude a sense of scenic charm that attracts tourists from India and the rest of the world.

In the Eastern Ghats, Araku Valley is famous for its rich coffee plantations. The aroma of fresh coffee beans is in the air of Araku throughout. The Arabica coffee grown in this region is recognised as unique. Coffee is grown under organic practices under shades of mango, jackfruit and silver oak trees. It also helps in environmental conservation and ecological balances.

Around 1.5 lakh tribal families living in this region are getting financially stabilised through coffee cultivation. The coffee plantations have been responsible to a large extent for the rehabilitation of the many tribes that stay in and around Araku Valley.

It was in 2007 that the first organic coffee brand by tribal growers was launched in India. This organic brand was named Araku Emerald and it enjoys domestic as well as international popularity. Year on year while demand for coffee is growing, coffee plantations are also growing at the same phase to meet the demand for premium coffee. Araku coffee is producing approximately 9,800 MT per annum and similarly we see neighbouring Odisha also gaining their coffee production at 350-500 MT (approximately).

What is the uniqueness of Araku Coffee and how do you see its future?

The coffee cultivated in this region at an altitude of 900 to 4000 mean sea level has unique qualities due to medium acidity in soil. The taste of this coffee leaves an intense citrus flavour and aroma with medium acidity on the tongue due to rich soil properties and texture and size of the beans. With these qualities, Araku coffee has won global recognition as a unique specialty coffee.

In the coming days Araku coffee undoubtedly would stand for the rich culture and heritage of the tribals of the State. It is sure that this coffee would become another gift article like Lepakshi handicrafts, Etikoppaka Bommalu for Andhra people.

What you think is lacking in the present ecosystem to take Araku Coffee to the next level?

Araku coffee needs an international standard coffee pre-post processing center in the Araku region which is accessible to tribal farmers directly. We see a lot of businessmen come in and purchase coffee at very low prices where the value for Araku coffee in the market is very high. If the pre-post processing centers are established locally and educate the tribal farmers about the value of the coffee grown, things will change.

Also, private players, government, farmer producers and organisations (FPOs) and NGO's have to take a step ahead to work with tribal farmers on the latest techniques and technology implementation on how to improve coffee production. Araku coffee plantation has a scope of producing approximately 22,000 MT per year whereas currently we are producing only 9,800 MT per annum.

How is your experience as an entrepreneur/ startup involved in promoting Native Araku Coffee?

Native Araku Coffee Pvt Ltd originated in 2017 to cater to tribal farmers-need. We have been seeing challenges like, tribal farmers don't trust outsiders for a long term partnership and everyone needs money instantly. It took 3.5 years to gain the trust of tribal farmers. We work with more than 5000 farmers across 100kms of coffee plantation area. The journey as an entrepreneur has been successful where we have taken time to educate farmers about how Araku coffee is different from other coffee in India and internationally.

We have partnered with FPO's in all major regions of coffee plantations. Every achievement in the region is shared and celebrated with them. We have partnered with international renewed certification company - Rainforest alliance for certifying Araku coffee, along with another international company- Blue number for traceability of coffee also partnered with Bellwether roasting company from the United States in promoting Araku coffee as one of their coffee menu's globally.

As part of our vision we are establishing one of the best Pre-post coffee processing and cup sampling center as per international standards in and around Araku coffee produced region. Our goal is every tribal farmer should have direct access to sell their coffee without a middleman and get a better market price to their bank account. The pre-post processing center will be ready by November 2021 for all tribal farmers to access. We have already established Native Araku Coffee brand in domestic and international markets. To promote Araku coffee domestically, we have tie-ups to establish coffee in all metropolitan cities. We shall start executing the plan effective from July 2021 piloting at various districts of Andhra Pradesh.

Besides the AP Forest Development Corporation and Girijan Cooperative Corporation, who are the other major players in growing coffee through tribals?

Major players apart from GCC are AP Forest Development Corporation, Coffee Board. Both Araku Coffee and Native Araku Coffee have emerged as popular brands for the connoisseur of coffee. FPOs are creating their own brand to sell in the market. Small companies who do retailing locally are also involved in selling coffee grown in Araku Valley. There are reports that many tribal farmers are still under the grip of middlemen who deny them a remunerative price.

We agree that the majority of the tribal farmers are still in the grip of middlemen. Out of 9,800 MT of coffee produced per annum, almost 50 per cent is managed by middlemen. Majority of these are local guys who work with small and large whole sellers in Karnataka and ship raw coffee directly. With this the tribal farmers feel that the market price is too low whereas the reality is the middleman earns higher whereas the farmer never gets their share.