(Re)writing the Indian Cacao Story

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One midnight fridge raid had us reaching out to a chocolate bar infused with blue pea tea and blueberries. This unexpected combination had caught our curiosity at the Goa Airport. The packing of Bon Fiction's Matcha Prince and The Blue Pea is fresh and whimsical, but the real surprise is that the cacao comes from East Godavari, a region now known for exceptional quality produce.

The cacao story in India is not new. Its journey from being a mere niche intercrop to emerging as a notable player in the international chocolate industry began in the 1960s when Cadbury (now Mondelez) introduced cocoa farming as part of its supply chain strategy. The company encouraged farmers in Kerala to plant cocoa as an intercrop with coconut and areca nut, providing them with seeds, training, and a ready market for their produce. It was a no-brainer and a quick side income for farmers who have long been at the mercy of the global cacao market, where yield has historically been prioritised over flavour. As a result, cacao beans in India were often of poor quality and harvested without regard for fermentation or drying methods.

HARVESTING

Cut to the early 2010s: Global demand for high-quality, sustainable cacao grows, farmer-entrepreneurs take over the tractors of family-run farms and shifted focus to produce better crops and refine post-harvest processes, including fermentation and drying. Under this new craft chocolate movement, brands collaborate with small-scale farmers to enhance practices and produce flavourful beans, harvesting Indian cacao's full potential and elevating its global status. Now, cacao pods are harvested only when fully ripened and rested before extracting wet beans. Beans and pulp are fermented to reduce bitterness, enhancing flavour complexity. They are slow-dried to eliminate moisture, ensuring hygiene and preventing mould. Once dried, beans are roasted to develop natural flavours, with precise roasting profiles critical for optimal taste. Roasted beans are cracked and winnowed to leave behind cacao nibs, which are refined into a silky paste through grinding, blending, and conching. Here's the base for exceptional chocolate.

FERMENTATION

Bon Fiction's Akhil Grandhi highlights how mass-market chocolate relies on additives, masking cacao's true profile. In contrast, craft chocolate focuses on authenticity and quality. On route to his plantation in Rajamahendravaram, Andhra Pradesh, Grandhi explains, "Farmers put the harvested beans in crate-size boxes, let the pulp drain and leave it to dry in the sun. Commercial players buy these because the cacao's flavour profile doesn't matter to them; they alkalise the beans and high roast them anyway - all they want is a base chocolate flavour; the rest would be masked by flavouring and additives.

ROASTING and TEMPERING

"For decades, commercial chocolate has prioritised efficiency and uniformity, overshadowing the complexity and origins of cacao. Craft chocolate disrupts this trend, emphasising meticulous care and quality. Produced in small batches, craft makers refuse shortcuts such as alkalisation or high roasting. This dedication ensures that each bar reflects the bean's natural essence and showcases its diverse, authentic flavours. For long , beans from the Godavari region were looked down upon; they were highly acidic. We had to impart technical expertise to process the beans correctly to extract the right flavour profile until farmers began to realise the true potential of the beans here."

Brands suchas Chitra'm are making cacao infused savouries

The result is, the world of chocolate - long dominated by countries such as Ghana and Ivory Coast and their prized cocoa beans - has been opening its eyes to India. One of the contributing factors, experts say, is that the monthly price of cocoa worldwide peaked in April 2024 at about 9,876 US dollars per metric tonne as a result of poor harvests in the Ivory Coast and Ghana, worsened by climate events such as El Niño. West Africa faces severe cacao production challenges due to climate change, pests, and diseases, affecting over 70 per cent of the global supply. This presents an opportunity for India to fill in the gap in the global supply, and strengthen its position in the market.

The global demand for premium, sustainable cacao is rising, and India's craft chocolate makers are well-positioned to meet it. Chaitanya Muppala, Founder of Manam Chocolate, whose company promotes West Godavari cacao and is listed on TIME Magazine's annual list of the World's Greatest Places, shares, "At Chocoa 2024 in Amsterdam, we saw people lining up to taste our 100 per cent dark chocolate. The overwhelming feedback proved that Indian cacao can be just as good as the best in the world."

In West Godavari, cacao is farmed amidst lush tropical flora such as banana, areca nut and long pepper, which lend unique flavour nuances to Manam Chocolate

At home, Indian farmers are increasingly planting cacao, with over 1 lakh saplings added in Kerala's Kottayam district alone this year. Other regions are expected to follow. Cacao production has grown from 25,783 MT (metric tonne) in 2019 to 29,792 MT in 2023-24. Cacao now covers on 1,09,826 hectares in India. Institutes such as Kerala Agricultural University are working on improving varieties, aiming for higher yields and quality beans that fetch better prices than commodity beans to tap into the premium markets. Experts believe that the focus on fair practices and sustainable growth could also help India carve out a niche in the global market.

Distinct Origins decided to fully own cacao's post-harvest processes at their state-of-the-art Cacao Fermentery in West Godavari

However, this shift has its challenges. Cacao remains a relatively low-margin crop compared to coconut or sunflower oil, which are more lucrative for farmers. "Indian farmers prioritise crops such as cashews or sunflowers that give higher returns," Muppala observes, "With cacao prices doubling this year due to the worst supply shortage in 40 years, there's renewed motivation to grow cacao despite high production costs. Sustainable practices set India apart: no deforestation, child-labour-freer-free farms, and strict regulations - these factors position Indian cacao for global recognition. Additionally, Indian farmers are tech-savvy, leveraging smartphones to track markets like Nasdaq and set competitive prices."

Chitra'm Craft Chocolates' 70% dark chocolate with palm sugar won the International Chocolate Award in 2022

Muppala's company, Distinct Origins too works with farmers in West Godavari to help improve farming practices and produce better-quality beans. "The idea," he says, "is to unlock a new world of flavours in Indian cacao through long-term partnerships with farmers and advancements in fermentation and drying techniques."

Last year, on a visit to a cacao farm in West Godavari, Sunday mid-day witnessed boundless possibilities as 62-year-old Boyapati Venkateswara Rao, a farmer from Tadikalapudi, blended tradition with innovation. He nurtures cacao trees using organic methods alongside growing diverse crops such as coconut and mango. His farm, where cacao pods mature even off season, reflects his careful, sustainable harvesting practices fine-tuned over four decades. Like Rao, many farmers are collaborating with entrepreneurs like Muppala to drive a movement that elevates Indian cacao to international standards.

Arun Vishwanathan, Founder, Chitra'm, is a food technologist from Cornell University, has a doctorate in agri-business management, is a second-level certified chocolate taster and six-time winner of international chocolate awards across categories at Asia and world levels. He started Chitra'm in 2017 as a tribute to his mother. "The craft market," he explains, "is expensive and preferred for gifting or making decadent desserts. Most cacao beans grown in India are put to industrial use as they have a vast market. For perspective, an order for craft chocolate would be 500 kgs of beans per year versus an industrial order for 500 tonnes yearly - so obviously, the farmer finds the latter more lucrative."

He adds that in the global market, cacao is an industrial commodity exchange. "Fine flavour cacao has always kept itself above industrial commodities; however, with a reduction in output and increasing prices, the buffer between these two is reducing rapidly, causing a hike in prices here, too," he says.

While Indian cacao still faces challenges, such as inconsistent quality and genetics, the shift towards sustainability is promising. The growing emphasis and innovations in post-harvest processes offer hope that India's cacao will eventually rival the world's finest. It will take time before Indian cacao becomes a global player. As Muppala notes, "It's going to take five to 10 years to fix the genetics of Indian cacao, but building technology around post-harvest processing will help us trace the chocolate's journey from farm to bar."

Named after two Latin American fine cocoa farmers, farmers and fermenters brand, Paul And Mike aims to show how great fine flavour chocolate can be. Vikas Temani, Co-founder and Business Head, says, "The flavour potential of any cacao varietal is very subjective and depends, to a large extent, on fermentation protocols and roasting. CCN51 from LATAM used to be considered a low-quality cacao but produces a high-quality cacao with changes in its fermentation protocol. We at Paul And Mike believe that investing time and effort in perfecting fermentation and roasting has enabled us to win awards consistently at the prestigious International Chocolate Awards.

Headquartered in Kochi, they grow and ferment cocoa on their farms in Kochi and Coimbatore and source wet cocoa beans from progressive farmers in Kerala and Andhra, taking care of the entire post-harvest operations, thus controlling the flavour profile. Their chocolate-making unit is based just a kilometre from the farm.

Entrepreneurs such as Nitin Chordia, who founded Kokotrait and Cocoshala, have helped train the next generation of chocolatiers and promoted the bean-to-bar process. Chordia also works with farmers to help them understand the science and artistry behind cacao farming and fermentation.

Supermarket aisles once dominated by mass-produced, sugary chocolates are now filled with small, artisanal makers offering quality chocolate from fine-flavoured beans. This farmer-entrepreneur vision rests on creative packaging to tell the story about where the cacao beans come from and how they are processed. While this may be excess of information to some, it is refreshing transparency for those who understand the intricacies of the process and the connection between great chocolate and quality cacao, down to its harvest, post-processing and processing.

While India's contribution to global cocoa production remains modest, the craft chocolate movement - which gained momentum with brands like Paul and Mike and Maison & Co - now sees small craft chocolate makers from tier-2 and tier-3 cities' commitment to fine-flavour and ethical practices strengthen the country's position even further.

Another brand, Anuttama, established in August 2020 and based in Bettampady, Karnataka, produces chocolates using cacao grown on its farm and sourced from local farms. The company uses natural sweeteners such as jaggery, dates, and coconut sugar, avoiding preservatives and artificial additives. Known for healthy dark chocolates, Anuttama also explores local flavour fusions - its Bella Tharai bar features coconut milk and jaggery.

While challenges remain - such as a small domestic market, lack of industry standards, and supply inconsistencies - the potential for craft chocolate is immense. Indian cacao boasts a unique flavour profile that can be enhanced through careful farming and post-harvest practices; technological advancements such as traceability systems are paving the way. As Muppala notes, "We are working on a system to document the cacao's journey through QR codes on packaging, helping consumers understand where their chocolate comes from and how it was made." With this momentum, the story of Indian cacao is just beginning - and it promises to be layered.

Craft vs artisanal chocolate

Craft chocolate is made in small batches, often focusing on the quality of ingredients, the bean-to-bar process, and fine flavours. It is characterised by careful sourcing of cocoa beans, controlled fermentation, and unique flavours.

Artisanal chocolate also prioritises craftsmanship and high-quality ingredients but often emphasises traditional, hands-on methods with less focus on the specific sourcing and flavour profiling that define craft chocolate.
Both emphasise quality and small-scale production, but craft chocolate often leans more into the detailed, fine-flavour process.

Despite the price hike, cocoa farmers in Ghana did not see corresponding benefits as farmgate prices lagged behind global rates. Ghana's government raised prices by up to 58% in 2024, but the gap between local prices and global benchmarks continues to grow