Indore (Madhya Pradesh): Climate change has unleashed its merciless wrath in heartlands of Africa and lush plantations of Malaysia. This has left a bitter aftertaste not just on the tongues of these continents but across the globe.
As the warming planet wreaks havoc on cocoa cops, India, once a prime land for sweet indulgence, now grapples with a harsh reality: the essence of chocolate has turned bitter.
With damaged harvests leading to dwindling production and prices soaring to unprecedented heights, chocolate industry finds itself at a crossroads. What was once a pleasure for the palate has transformed into a dire struggle for survival, as even the smallest of confectionery ventures find themselves on the brink of extinction.
According to United Nations Conference on Trade and Development (UNCTAD), the cocoa market has witnessed an alarming surge, with prices skyrocketing by over 130% from July 2022 to February 2024.
FactSet's analysis further unveils a harrowing reality, indicating a near-doubling of prices since the onset of this year: The repercussions are dire, with chocolate production taking a crippling blow. In the heart of India, particularly in Indore, the epicentre of confectionery the decline is staggering, with production plummeting by a staggering 75%. Experts echo this grim assessment, painting a bleak picture for both the state and the nation at large.
President of the Indore Confectionery Manufacturers Association (ICMA) Dinesh Choudhary laments the ripple effect of the crisis, tracing it back to Malaysia, a key importer of cocoa to the region. He elucidates how the ravages of climate change in Malaysia mirror those in Ghana, the titan of cocoa production.
Market Devastation: Production Falls to 300 Tonnes
ICMA president said that confectionery production has dropped by at least 75% in last couple of months. Terming it the worst decline of the decade, Choudhary said, "The market is badly hit due to multiple reasons majorly rise in cocoa and fat prices. Other reasons include summer season, model code of conduct, and religious events like Ramzan." He claimed that Indore produces about 40 tonnes confectionary per day, with chocolate production accounting for 30%. Currently, it has dropped to a meager 10%.
Indore: A Confectionery Powerhouse
As per confectionery association, Indore stands second after Hyderabad in confectionery production in the country. However, Indore beats its closest rival in product catalogue to be on the top of the chart.
"Approximate production of confectionery in Indore market is over Rs 200 crore per month. We stand on top in product categories while second in quantity of production in the country," the ICMA president said.
