The International Coffee Crisis Of India

1455 WordsOct 12, 20166 Pages
First of all, people in local communities suffer from poverty because of imbalanced trade and payment to the commodity that they grow. Their lives depend a great deal on so-called global commodities such as coffee, cacao, and tea, which can be available to citizens in developed countries at a low price. Therefore the demand of these commodities has increased in the last few decades. According to Ambinakudige (2009), coffee that is one of the most traded commodities in the world is the main means of small farmers’ lives in developing countries. He examined how people in developing worlds are influenced by volatile global markets, especially focused on small farmers in the Kodagu district of India. In 1998, the amount of coffee export reached to US$469 million. However, after the International Coffee Agreement collapsed, known as the coffee crisis, which deregulated the international coffee supply, the labour force in coffee sector decreased in India, and 150,000 jobs were lost between 2000 and 2002 (Oxfam, cited in Ambinakudige 2009). People cannot manage their coffee plants and yield, earn enough money to return a loan on time, and get the loan the following year, which results in less investment in coffee. That cycle makes their lives worse and makes people stay in the cycle of poverty (Ambinakudige 2009 p.562). Here is an another example of livelihoods of coffee farmers. The film ‘Black Gold’ (Francis & Francis 2006) depicted the unequal coffee trade in Ethiopia where the

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