An attempt has been made to analyse the value chains of Araku Valley Arabica Coffee in Alluri Sitharama Raju District of Andhra Pradesh. Based on primary data acquired from a sample of 400 tribal farmers, the study found that channel II has a lower marketing cost and price spread than channels I and III. In contrast, the producer share in consumer rupee, and market efficiency was found to be higher for parchment in channel II compared to other marketing channels. The market efficiency of red cherry was higher than that of dry cherry. This study suggests that FPOs and government assistance are required to buy red cherries from farmers experiencing water constraint in the study areas. The government should also establish curing and hulling units that add value to parchment and dry cherry by transforming them into clean coffee, so that farmers will get a better price and lead to a more sustainable and prosperous coffee production.
Golli et al. (Sun,) studied this question.