Implications of Geographical Indication on Indian Specialty Coffee – A Case Study on ‘Monsooned Malabar Arabica Coffee’

Abstract

Geographical Indication registrations are initiated keeping in mind various benefits out of it such as product differentiation, branding, price premium, increase in exports etc. There are more than 400 registered GIs in India among which 7 are specialty coffee varieties. The process of identification of unique specialty varieties of coffee and getting it registered with the Geographical Indication registry, Chennai is initiated by the Coffee Board of India. The present study aims at assessing the economic impact of first GI tagged coffee variety, ‘Monsooned Malabar Arabica Coffee’ by evaluating the exports. The study also analyses whether the GI tag was instrumental in increasing the income of the producers, the analysis is done by assessing the variation in price per metric ton of coffee being exported. The researchers also evaluates whether the GI registration has brought about temporal evolution to the coffee variant. The causal impact test results shows that this coffee variety with GI tag was able to increase its exports and earn a premium price after the GI tag registration. The results of temporal factor, that is increase in number of labourers in the plantation after the GI registration, even though it reveals a positive increase it is not attributable to the receipt of GI tag. The researchers conclude that the GI registration has brought about positive impact in the case of ‘Monsooned Malabar Arabica Coffee’.