Kerala market sources say coconut production this season shot up beyond all expectations, creating a problem of plenty. Import of coconut oil, oil cake and other coconut products from Sri Lanka, the Philippines and Indonesia on an open general licence only worsened the situation.
It is further reported that due to a rise in production complied with imports flooding the market the prices of copra (dried coconut) and coconut oil have plunged to the lowest level in the last one decade.
Currently, copra prices are Rs. 1,975 a quintal as against Rs. 3,450 during the corresponding period last year. Copra is now being traded at Rs.1,275, well below its official support price of Rs. 3,250. A similar price crash had happened way back in ’90. The central agency, National Agricultural Co-operative Marketing Federation (Nafed), which tried to come to the rescue of coconut farmers, has completely stopped its coconut procurement scheme.
A coconut’s average price currently is about Rs. 2 as against Rs. 4.80 in January last. The total coconut production in Kerala is estimated to be 6.6bn a year. Observing that the current price crash will cause Kerala an estimated loss of Rs. 2,000 crore, Ministry says steps should be taken to procure coconuts and produce oil for export. Coconut should also be accorded all the benefits eligible for oil seeds and the Coconut Development Board’s funds should be used for the benefit of the farmers.
Market
Update
(Oil Seeds)
