Theobroma cacao is one of the promising intercrops of coconut in India. A new disease characterized by orange to brown coloured, prematurely ripened and in some cases, shrivelled cocoa pods were observed in cocoa gardens of East and West Godavari districts of Andhra Pradesh from September 2011. Per cent incidence of such diseased pods varied from 3.9 to 5.0 in surveyed villages. Symptomatology of the disease on cocoa pods was recorded and Koch postulates were confirmed. The isolated bacterium showed the biochemical characteristics of the family Enterobacteriaceae. It was Gram negative, rod shaped, facultative anaerobe and showed negative reaction to oxidase test and positive reaction to catalase test. The bacterium was identified as Erwinia carotovora. The temperature and pH studies showed that the bacterium could survive at a pH range of 6.0 to 9.0 and at temperature between 20° to 40°C. As the commercial cultivation of cocoa in India is rapidly increasing with its success as inter crop in coconut and as the E. carotovora prefers the climatic conditions existing in Godavari delta regions of Andhra Pradesh, the disease can be a threat to future cocoa production in the state.