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G.K. Nair

Other southern States' entry tips the scale

Kochi , Sept. 6

The entry of several southern States into coconut cultivation in recent years with high yielding varieties has broken the monopoly of Kerala in this crop, besides making coconuts available throughout the year.

On the other hand, its availability spread over the year at competitive prices has pushed the prices of coconut oil and copra down, putting coconut growers in the State in trouble as the prices have been ruling below remunerative levels.

Major producer

In fact, till 1980, the price cycle for coconut products was linked to production in Kerala, as it was the major producer with 80 to 85 per cent share. It used to peak at the end of the year and fall in the beginning of the year as the season begins in Kerala.

But, of late, the situation has changed as Kerala's share was reduced to 40-45 per cent due to rise in production in Tamil Nadu, Andhra Pradesh and Karnataka.

An analysis of the price trend since 2000 would reveal that it is high price during January, which falls towards the end of the year. "This is because when season ends in Kerala by June-July, it starts in Tamil Nadu and then in Karnataka and Andhra, continuing till the year-end," says Mr N. Ananthan, former Secretary, Cochin Oil Merchants Association (COMA).

Distressed Farmers

Even though the Central and State governments spend crores of rupees for research and development in coconut sector, the coconut farmers are deprived of a remunerative price all these years except for a limited period at some intervals, he said.

As a result, coconut farmers continue to be a distressed lot. For over a year now, the prices of copra are ruling far less than the minimum support price (MSP) of Rs 3,590 a quintal.

The open market prices are dwindling between Rs 3,000 and Rs 3,300 a quintal.

Direct involvement of farmers in marketing could be viable measure, which can be tried, he claimed. "This will improve farm-market linkage", he said.

Through this direct marketing system farmers would be able to take informed decision with full pricing freedom where to sell, when to sell and price at which to sell.

If properly implemented, this would pave way for monitoring regular supply demand in the market and also give clear indication about the real trend of the market without any distortion in prices.

By this farmers can gain Rs 40-45 a quintal by avoiding the intermediaries. This would also provide more opportunity for rural employment and eradication of poverty among rural population to certain extent, he said. Therefore, a pragmatic policy with a time bound programme is the need of the hour, he said.

Besides, according to him, the statistics on production of nuts, copra and coconut oil that are available currently are mostly based on approximation from trade.

More Stories on : Coconut & Copra | Kerala

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