Climate variability poses a significant threat to India’s coffee and tea sectors. Rising
temperatures, erratic rainfall and recurring droughts reduce yields, deteriorate quality
and endanger farmer livelihoods, making it essential to assess climatic impacts on crop
productivity and long-term economic sustainability. The present paper attempts to study
and compare the effects of climate variability on coffee and tea in India. For this purpose,
secondary data from 1971 and 2022 are used. The Johanson co-integration test, the
Granger causality test, and regression analysis are commonly used to assess how climate
variability affects crop production. The study discovered that while doing the ADF, DF,
and PP tests, both intercept and trend specification are utilised and the coefficients of
temperature, rainfall and the production of coffee and tea are shown to be significant.
The study found coffee and tea production increases by 6.423 per cent and 5.681 per cent
change in yield for every 1 per cent increase in temperature and decreases by 1.87 per
cent and 1.33 per cent for every 1 per cent increase in rainfall from 1971 to 2022. It is
concluded that encouraging sustainable behaviours, such as subsidies for eco-friendly
technologies and governments and industry players can promote certifications for
sustainable products.
Keywords: Climate, coffee, tea, variability
