Prices of edible copra, better known as ball copra, have risen over the past two months on strong festive season demand, mainly from buyers in the North. Besides, the purchases by raw-material-starved oil millers in Tamil Nadu, have also supported the firming trend in prices, traders in Karnataka said.

Benchmark prices in Tiptur, the largest market for ball copra, which ruled between Rs 7,000-8,000 per quintal at the beginning of July this year, have now moved up to Rs 12,500-Rs 13,100 levels – an increase over 50 per cent over the past two months. When compared with the modal prices in January, ball copra has doubled over the past eight months. Modal prices of ball copra ruled at around Rs 5,500 in early January, while it was hovering around Rs 11,400 at August-end.

The firming trend in prices is seen impacting the market arrivals.

“Farmers are seen holding back their produce, anticipating a further increase in prices,” said Jayesh Mehta, a trader in Tiptur.

“We are hopeful that prices will stay at these levels on good buying interest from North India and from millers in Tamil Nadu and Kerala,” Mehta said.

China factor

A section of the trade feels the increased buying interest from China, witnessed early this year, has also contributed to the firming trend in prices. The stand-off between India and China over the border dispute had slowed down the movement of copra to the neighbouring country over the past two months.

However, with the easing of border tensions, we expect demand from China to pick up going ahead, said Soundar Rajan of Taurus Promotional Products, an exporter.

Soundar Rajan estimates that around 180-200 containers of copra have been shipped to China this year. Volumes are up by around 40 per cent this year, he adds. Exports of copra to China are mainly routed through Vietnam and through the ports of Chennai and Kochi, Soundar Rajan said.

Ball copra is produced in and around Tiptur, mainly in districts such as Tumkur, Hassan and Chitradurga. For a farmer, it takes a minimum of 11 months to produce ball copra.

Farmers dry the mature coconuts for at least 11 months during which process the water in the nut gets dried naturally, lending unique sweet taste to copra. The dried nut is de-husked and de-shelled to obtain copra, which is ball shape. Hence, it is called ball copra.

Srikant Kelahatti of Raitha Bandu, commission agents in Tiptur, said the prices could firm up further, if the border issue with China is resolved. The prevailing prices, if they remain constant, are seen profitable by farmers to an extent, Kelahatti added.

The firming trend in prices is seen providing some relief to growers, who have been battling consecutive droughts for the past three years, which has impacted yields, said Anekatte Vishwanath of the Coconut Growers Association.

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