Activities within the grant and expected impact:
In July 2005, the Trust sanctioned a two-year grant to Naandi towards enhancement of livelihoods of tribal farmers of Araku valley in Vishakapatnam district, Andhra Pradesh, through promoting and supporting organic coffee cultivation.

The key outcomes of Phase I, which ended in August 2007 were:

	Registration of the small and marginal tribal farmers’ 'Mutually Aided Cooperative Society’ (MACS) with 5,000 registered members
	10,000 acres of coffee plantation coming under organic farming, of which 3,000 acres were organically certified by the Control Union
	Fair trade certification being provided by the Fair Trade Labelling Organisations based in Germany
	8,000 tribal households adopting scientific organic cultivation practices
	Nearly 1,000 farmers doing intercropping of organic pepper, which provided an additional income of Rs3,000 per farmer
	45 metric tonnes of raw coffee being processed at the Naandi’s centralised processing unit during November 2006 to February 2007
	The average yield of clean coffee per acre increasing from 45 kg to 81 kg in a span of one year.

In the ongoing Phase II project, the organic promotion technology developed by Naandi and promoted with about 8,000 households in Phase I is being expanded to approximately 30,000 households.

The key objectives are:

	To increase household income of all farmers from present levels of Rs8,500 per annum per farmer to a minimum of Rs20,000 per annum per farmer over three years
	To increase yield per acre of coffee plantation from the current levels of 480 kg to approximately 720 kg
	To create a centralised coffee processing unit in Araku to enable farmers to process their produce efficiently and consequently fetch higher prices
	To obtain premium pricing for two main commodities, namely coffee and pepper
	To strengthen the Mutually Aided Cooperative Society, i.e. the farmers’ cooperative, in all aspects of cooperative society management, and to build its capacity to develop external linkages

The key activities are:

	Capacity building of the community through providing trainings and exposure visits to the farmers
	Coffee processing through the development of a central processing unit (CPU) to process the coffee berries at a central location
	Establishing market linkages through mapping the supply-demand chain for coffee and pepper, and building a network of domestic and international buyer relationships with MACS

The project is expected to lead to:

	All farmers being trained in optimum crop-management practices, and the use of enhanced technology in the field to boost crop productivity and increase incomes
	8,250 metric tonnes (MT) of coffee berries, and 1,375 MT of clean coffee being processed in three years. Consequently, 30,000 farmers getting an additional income of Rs10,000 through the supply of coffee to CPU
	Development of a strong market for coffee promotion, providing the 30,000 farmers with assured commodity prices, and enhancing their incomes to about Rs20,000 per annum.

Also read:
	Impact study report of Naandi