Farmers hit hard as CAMPCO refuses to procure dried cocoa; allege collusion with chocolate companies

Thodupuzha: Farmers have raised complaints against CAMPCO (Central Arecanut and Cocoa Marketing and Processing Co-operative Limited) for allegedly rejecting their dried cocoa beans, citing poor quality. This stance by the cooperative institution has pushed many cultivators into crisis.

In the hope of securing better prices, several farmers had dried their cocoa beans instead of selling them immediately after harvest. At one point, dried cocoa fetched up to ₹450 per kilo. The trend of drying cocoa for better returns became popular among farmers. Initially, CAMPCO procured the dried beans without any quality inspection. However, farmers now allege that new quality conditions were introduced recently, and CAMPCO has begun returning their produce.

The only procurer in the field

With other agencies having exited the market over the past year, CAMPCO has been the sole procurer of cocoa. Chocolate manufacturing companies purchase their cocoa from CAMPCO. Farmers now suspect collusion between CAMPCO and these companies.

While cocoa prices in the international market range between ₹850 and ₹950, CAMPCO procures it from farmers here at just ₹450. Farmers allege that the procurement agency is trying to artificially suppress prices by claiming reduced demand. In the past, companies like Cadbury used to procure cocoa directly from the open market, which ensured healthy competition.

Even as international prices soar, farmers are not receiving even half of that amount locally. CAMPCO primarily collects cocoa from its shareholders. Most sellers are small-scale traders who hold membership in the cooperative. As CAMPCO started rejecting the dried beans, local traders in the villages also stopped purchasing cocoa.

As a result, farmers are now forced to sell their produce at whatever price they can get to traders from other states. CAMPCO is not buying fresh cocoa either, leaving farmers with no choice but to sell it at throwaway rates.

A meeting to discuss the next course of action is scheduled to be held in Thodupuzha on Friday, according to Anil Raghavan, a farmer and shareholder in CAMPCO.

However, CAMPCO officials maintained that they are still procuring cocoa from farmers. Beans lacking in quality are rejected by chocolate companies, which is why strict quality inspections have been introduced. Only cocoa that has been fermented for seven days and properly dried is deemed suitable for processing. It is the substandard produce that is being returned, claimed officials from CAMPCO’s quality control department.