How Mangalore Cacao Renaissance Is Redefining Indian Craft Chocolate

For decades, Indian cacao existed in the shadows of the global chocolate industry, harvested, fermented hastily, and exported primarily as cocoa butter. Mangalore and its surrounding coastal belt in Karnataka, however, are writing a different story. What was once a side crop grown alongside areca nut and spices is now emerging as the centrepiece of India's craft chocolate revolution.

South India, particularly Kerala, Karnataka, and Tamil Nadu, accounts for approximately 95% of India's total cacao production, with Karnataka alone contributing roughly 50% of the national output. Within this, the Dakshina Kannada district has emerged as a critical hub, where humid coastal conditions and traditional intercropping systems create ideal growing environments.

"For decades, Indian cacao was sold mainly as a commodity for butter exports. Now, more makers are retaining Indian-grown cacao to produce made-in-India craft chocolate," explain Keshav Murthy M, one half of the farming couple behind KOKO PODS. 

Before 2020, artisanal chocolate brands in India were minimal. However, Balasubrahmanya P S, one of the co-founders of Anuttama Chocolates, observed a dramatic shift, "When the cacao industry entered into the artisanal segment—I would say from the last five years—it's growing much. There is a large increase in artisanal chocolates, and people understand the difference between commercial chocolate and pure chocolate."

Awareness and The Post-Harvest Challenges

The pivot from commodity to craft hinges on proper post-harvest processing. For years, farmers rushed through fermentation and drying to sell wet beans quickly, prioritising volume over flavour. "When I started, there were not many people doing the proper way of fermentation, and many people were cutting down the trees," notes Balasubrahmanya.

"Due to the commodity market, many farmers don't pay attention to the fermentation and drying process, which are the most crucial steps in the chocolate-making process," emphasises Keshav. "Making farmers understand the process is very important."

Ketaki, who runs Terra Artisanal Chocolates at Varanasi Organic Farms, one of Karnataka's first organic cacao plantations, certified organic since 1991, witnessed this challenge firsthand. "I started teaching at first just to spread awareness about what craft chocolate is all about. Craft chocolate was still a niche back then," she recalls.

The attention to processing has revealed Mangalore cacao's distinctive terroir. "This gives this origin a specific flavour, which is very coconutty, a very molasses jaggery kind of flavour, which is very unique to this region," Ketaki explains. "Cacao is grown around a lot of coconut, a lot of spices. So those are the things that you get to taste in a really good craft chocolate coming from this region."

However, challenges remain. "A lot of cacao is harvested during the early monsoon, so drying becomes difficult because this area gets a lot of rain. The humidity is about 90%, sometimes 99%," Ketaki notes. "Post-harvest processing is a little bit difficult, but there are people doing amazing things with that as well."

The Tree-to-Bar Model

What distinguishes Mangalore's emerging chocolate makers is their unusual proximity to the source. "Our chocolate is 'single origin', which means that all the cocoa beans that we use come from our own plantation. This reduces the entire supply chain into a single point," explains Keshav. "We have end-to-end control; this has given us complete control over the quality of the beans we use."

Balasubrahmanya exemplifies this model. "We started from our farm to make the chocolate—that's where we started with the farm-to-bar," says the co-founder. Starting as an IT professional whose family had grown cacao for decades, he transitioned during the pandemic. "Now we are associated with more than 20 to 25 farmers who are giving their fresh beans to us. All our 20-plus farmers—their beans, the origin, the taste, and the notes are the same. That's why we call it a single-origin bean."

Terra Artisanal Chocolates takes hyper-localisation even further. "It's made where it's grown, so it's a hyper-local product. We are working with local people and training them," Ketaki explains. She trained two local women to make chocolate. "People who are growing are also eating the chocolate. Farm workers never actually eat chocolate. Now they understand what they're doing, why they're doing it."

This model supports traditional agroforestry. "Cacao is an intercrop," explains Balasubrahmanya. "In Dakshina Kannada, areca nut, coconut, cocoa, nutmeg—these things are grown. A farmer growing areca nuts can easily plant cacao in between, and it will thrive very well."

Beyond Mass-Market Chocolate

Mangalore's craft chocolate movement is fundamentally altering how Indians perceive domestically produced chocolate. Commercial brands in India typically contain 15% or less cacao, compared to 30% in European markets, far below the threshold for actual chocolate.

"When you compare with other commercial brands, our craft chocolate is completely a different category," asserts Balasubrahmanya. "Commercial chocolate—they process it in very high quantities, many tons. They do alkalisation to neutralise everything, remove the butter, and add palm oil or vegetable fat, and give artificial substances like vanilla essence."

In contrast, Mangalore's craft makers emphasise purity. Anuttama's chocolates use "jaggery, dates, and coconut sugar—that's the difference from other brands. We are not using any refined vegetable fats. "The health-conscious positioning resonates with urban consumers." "Now people trying to shift from unhealthy to healthy are looking for healthy chocolate," Balasubrahmanya observes. Dark chocolate, typically 60% cacao or higher, offers antioxidants from high flavanol content. Consumer education remains central. "People who are health-conscious—those are the people we attract. We are creating a small community," Ketaki notes.

Looking forward, stakeholders see immense potential. "This region has a lot of potential to offer. If the farmers are willing to spend time, do research, and do things in a more specialised way, this region can honestly become a very popular destination for chocolate lovers," Ketaki asserts. The 2023–24 cacao price surge, driven by global shortages and increased domestic demand, validated farmers' efforts and spurred new plantations beyond traditional areas. "There are a lot of inquiries to get good-quality beans. Kannada beans can play a vital role in making good-quality chocolate," the Balasubrahmanya notes.

Mangalore's cacao revolution represents more than agricultural diversification. It's a demonstration that India can produce world-class chocolate rooted in terroir, tradition, and transparency, redefining what Indian chocolate means.