Global Price Slump To Boost Cocoa Import.

KOCHI: Indianchocolate companies get a breather on their shopping bill overseas forcocoa as global prices drop on the back of higher sales fromIvory Coast andGhana. One out of every two cocoa beans used in India is imported and this dependence will rise as local production is unable to match the double-digit growth in chocolate demand.

The first harvest of cocoa during May-June has been poor in the country. Last year, the crop in this period was better but the second harvest turned out to be below expectations. Though the final figures are yet to be available, India imported around 10,000 tonne cocoa beans in 2010-11.

With dry bean prices in India still hovering around Rs 165 per kg, major chocolate companies are likely to bank on imports. "We are at present buying from local suppliers like Camco. But if the global price is advantageous, we will consider sourcing it from outside the country," said Vincent Prabakar, head of purchase, Lotte India, a subsidiary of Lotte Confectionary of South Korea.

Lotte's Choco Pie has picked up well in cake segment. "With the launch of Choco Pie, our consumption of choco mass, which is a mixture of chocolate and other ingredients, has gone up by ten fold to around 700 tonne per annum,'' Prabakar said. Cadbury and Morde, two major chocolate companies that buy from both domestic and inte-rnational markets, declined to comm-ent on their cocoa buying operations.

Cocoa consumption has been rising in the country and higher imports have not been able to bridge the gap between demand and supply. "demand has risen to 40,000 tonne and the growth in consumption is touching double figures,'' said Khokan Debnath, deputy director of Directorate of Cashewnut and Cocoa Development. According to the figures provided by the directorate, total production in 2010-11 was at 14,436 tonne -- an 11% rise over the previous year. But the industry estimate is 12,000 tonne. This year, going by the first harvest, output is expected to be less.

Source : economictimes.indiatimes.com