Over a hundred coconut crushing units in and around Kangeyam town in Tirupur district have been closed on account of poor sale of coconut oil and lower production of coconuts.

Over 120 coconut oil producing mills are functioning in and around Kangeyam. They buy copra from various markets in Erode district, besides Pollachi to produce coconut oil. Due to severe drought in Erode district and failure of the North-East Monsoon, over five lakh coconut trees have withered, affecting production . Similarly, production of coconuts has decreased in other places too.

Lack of buyers has resulted in prices of coconut oil has decreasing to ₹1,760 for 15 kg loose pack. In wholesale markets, it is selling at ₹118 a kg, while it is retailing at ₹130-140 a kg

Coconut oil sales have came to standstill. Just 1-1.5 tonnes of coconut oil were sold last week.

In view of the lower production, many farmers have begun to import coconut from Kasaragod and Kannur areas in Kerala. Over 20 truckloads of coconuts arrived in the last three days in Erode area, said farmers. Copra is selling in the open market at ₹9,000 a quintal and in regulated market committees at ₹8,800 a quintal.

R. Palanisamy, a coconut oil dealer, said the current price of coconut oil is a record high and it will come down since crushers have ample stocks. He said already only coconut oil sales were limited in Tamil Nadu.

At the Avalpoondurai Regulated Market Committee near Erode, a popular one in the country, all 70 tonnes of copra that arrived for sale were sold on Friday.

The first grade copra was sold at ₹8,655 a quintal and the second variety at ₹8,405.

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