Economic Impact of Coffee on Coorg, India - Research Paper Example

The paper "Economic Impact of Coffee on Coorg, India" is an exceptional example of a research paper on macro and microeconomics. The coffee industry is one of the world’s largest beverage industries and coffee is one of the most popular beverages around the world. There are a number of countries that produce coffee like Brazil, Colombia, Costa Rica, Indonesia, Vietnam, Mexico, Ethiopia, India, Guatemala, and Guinea (Coffee Detective). These form the top ten countries that produce coffee across the world.

This paper aims at discussing one of the major cities of India, Coorg, and the impact coffee production has had on the economy of the region. Before moving into the economic impact, it is essential to gain a brief overview of the region in focus. About Coorg: Coorg (Kodagu) is a beautiful district in the southern part of India in the Karnataka State. This region lies on the Western Ghats of southwest Karnataka and is more commonly referred to as the Scotland of India. This region is well known for two main things, Coffee and Wildlife.

Coorg has rich wildlife. The main cultivation of the area is coffee plantations. Although the region also produces paddy and other crops like rubber, spices, cocoa, and also forest honey, this location is known for the coffee (Serene Home Coorg). Economic Environment: The coffee plantations have become a major part of the region since the 1900s. Coffee is the major and main cash crop for the region of Coorg. The region is the most prosperous area in the state of Karnataka and this is all due to the production of coffee and additional plantation crops.

The locations two main types of coffee include Robusta and Arabica. This region provides as much as 30% of the total production of coffee for India. India has been known for exporting coffee and the country presently has seen a major increase in the total exports for as much as 60%. The exports for the country were as much as 271589 tons as of 2009 – 2010 (Commodity Online). The total production of coffee for India has been 2.89 lakh tons for the year 2009 – 2010. India has grown to become one of the top 10 countries in the list (The Financial Express).

The region of Coorg is relatively a very underdeveloped area and the place has simple people whose main occupation is cultivation including that of paddy, rice, spices, and coffee. The region has seen an increase in terms of tourism as well. However, coffee has brought about the highest economic contribution to the region. The region of Coorg is has a number of small coffee growers who are generally represented by various coffee farmer’s bodies (Prakruthi). The state of Karnataka provides as much as 59% of the total production of Coffee (Karnataka Official).

Coffee plantations have not only helped this region develop and improve as they are cash crops, but have also had an indirect impact on the economy. Several hoteliers and resort owners have taken advantage of the plantations and have built their hotels and resorts admit the plantation. This has led to a steep increase in overall tourism. An excellent example of this is the case of Orange County, a resort which provides the customers with a complete tour of the coffee plantation and the overall process of the coffee making (Commodity Online).

The coffee plantations started here in Coorg as the experiment in the 1990s, however it has grown from not only being the biggest cash crop but has also opened up a number of opportunities for the people of Coorg, which includes opening of ‘homestays’ in the plantations, which act as a source of income for the residents as well. Conclusions: On the whole, the economy of the region has seen a major improvement since the early years. The general population has gained a lot from the coffee crops, due to the high prices.

India as a whole export as much as 75% of its total production and this adds to the overall economic growth to a great extent (Joy). It is to be noted that the economy of the Coorg region has seen a major improvement in terms of indirect benefits, i.e. tourism for the coffee plantations and also homestays. On the whole, it is clear and evident that the coffee plantations has provided an overall improvement to the region and has had a major contribution to the growth and wealth of the region. On the whole coffee production and exports has also had a major impact on the overall economic condition of India as a whole as well.