Rise in coconut prices a continuation of a global phenomenon dating back to 2020
In the wake of the disruption in coconut market, as transportation and logistics got hit during the pandemic, almost everyone turned coconut into copra (dried flesh of the coconut) to extract oil. This did not help and a crash in coconut price ensued in March 2022, a trend which lasted till August 2024.
'Consequently, the production dropped not just in India but across all major coconut producing countries in the equatorial region such as Indonesia, the Philippines, and Sri Lanka. Climate change, drought, and drastic difference in temperature also contributed to the drop in production,' said the official on condition of anonymity. With the drop in prices, negligence crept into the upkeep and maintenance of coconut farming. Measures like applying fertilizers faltered, and this proved an additional blow.
Demand for tender coconuts
As people turned increasingly health conscious post pandemic, there was a soaring demand for tender coconut from north India. This led to the despatch of truck loads of tender coconuts from coconut producing centres in Karnataka and Tamil Nadu to north India. Production further dropped, as farmers were not waiting till coconuts were ripe for harvesting, as tender coconuts were fetching them great prices, thus impacting the availability of coconuts. The proliferation of industrial units dealing in desiccated coconut powder, coconut milk, virgin coconut oil etc and their corresponding increase in exports during the previous fiscal further contributed to the price rise.
'The trend of rising price was noticed since last September. From what can be gauged from the market, coconut availability is returning to normal in places like Tamil Nadu. We expect the prices to stabilise in another two to three months,' said the official. Ironically, now with the price still on the rise, the farmers are left with far fewer coconuts to cash in though.
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