The Hindu Business Line : Copra, coconut oil prices up on fall in production

A SHARP fall in coconut production has pushed up the prices of copra and coconut oil in the country and it has also led to large-scale adulteration of the oil.

Drought conditions in Tamil Nadu and Karnataka have brought down coconut production, while diseases such as mite attack and root-wilt have hit production in Kerala.

Thus, shortage in coconut/copra has resulted in the milling and desiccated coconut sectors to import coconuts from Kerala, leading to short supply of copra to milling units in the State.

Milling units in Kangeyam in Tamil Nadu and desiccated coconut units in Karnataka have been buying large quantities of coconut from Kerala, mainly from the Malabar region.

Daily, 2.5 lakh fresh coconuts are being transported to Tamil Nadu and Karnataka from Kozhikode region, Mr Shaji Sebastian, Secretary, Kerala Malanadu Marketing Society (KMMS), Kozhikode, told Business Line.

He said the labour cost of cutting, de-shelling and drying one load (25,000 shells) of coconut in Kangeyam in Tamil Nadu was only Rs 1,250 and hence the units were taking coconut for processing there.

Consequently, the commercial availability of copra has dropped, Mr P.V. Alexander, Managing Director of a major coconut oil mill and former President, Cochin Coconut Oil Merchants Association, said.

According to him, as the prices of coconut has been very low for about a decade till 2001-02, the growers had neglected the coconut palms, which had in turn affected the productivity.

Kerala used to produce around 3.5 lakh tonnes of oil and over 5 lakh tonnes of copra a year.

The production might have dropped by around 30 per cent, he said.

On the other hand, consumption of coconut kernel and oil for edible purpose is on the rise. The demand is so high that the prices have shot up to an all-time high of over Rs 7,000 a quintal leading to rampant adulteration, Mr Alexander said.

According to Mr Alexander, as coconut prices have been ruling at high levels, the growers had started nursing their palms now. But the result would emerge only after a year or two and until that time the prices might rule high.