Teaching activity

In the News Teaching Activity – rising chocolate demand boosts Indian cocoa bean industry (Nov 2024)

Elizabeth Veal

28th November 2024

Rising demand for Indian cocoa beans is transforming agriculture and boosting local production.

India’s cocoa production is surging, with output growing 40% since 2015 to 110,000 tonnes in 2023, yet it remains insufficient to meet the 15% annual growth in local chocolate and confectionery demand. While hybrid trees and government initiatives are improving yields—some reaching up to 5 kilograms per tree per year—fragmented farming practices and inconsistent post-harvest techniques limit quality and scalability. Domestic chocolate makers benefit from the lower costs and reduced carbon footprint of Indian beans, but international recognition for Indian cocoa remains elusive, leaving untapped potential for future expansion.

Chocolate makers stoke boom for Indian cocoa beans - BBC News

1. "The future is bright, with huge demand." Using a demand and supply diagram, show the impact of increasing demand on the equilibrium price and quantity and explain why the farmer thinks he will make ‘a good profit’.

2. ‘Cote d’Ivoire and Ghana between them produce more than half of the world’s annual output.’ Discuss why these countries may find primary product dependency hinders their economic development.

3. Assess the likely success of the Indian government’s measures that aim to support the Indian cocoa bean industry.

Download this free tutor2u resource

Elizabeth Veal

Liz has taught Economics for over 25 years, including several years as Head of Economics at leading schools.

© 2002-2024 Tutor2u Limited. Company Reg no: 04489574. VAT reg no 816865400.