KOCHI: Though the spike in coconut price has strained family budgets, it has a positive impact on the farming sector. The coconut farmers, who stopped tending to their crops long ago complaining of unaffordable labour cost and fertilizer prices, have started taking care of the trees.
Though the prices have started declining following rise in production, the farmers have restarted widening the pits, applying manure and clearing the crest by pruning dead leaves apart from maintaining the 45-day harvest cycle.
“As the coconut prices were low and the labour cost was high, medium and small-scale farmers had stopped employing labourers for manuring and harvesting. They used to collect only the falling coconuts. But with the price of coconut crossing `95 per kg many farmers have restarted taking care of the trees.
We have introduced a package for coconut tree care which includes six harvests, two times manuring, spraying pesticides and clearing the pit every month. This has evoked positive response among farmers,” said Arunjith, a farmer in Varkala who promotes the Friends of Coconut Tree initiative with the support of the Coconut Development Board.
At a time when low procurement rate, diseases and heavy rain have made paddy cultivation unprofitable, the rise in coconut prices has come as a blessing for the farmers. “Last month the agents procured coconut from our area at the rate of `62 per kg, which was a record.
Four days ago I got `50 per kg. We were getting an average price of `18 per kg less till a couple of years ago. Though the price has started declining we are satisfied with the current procurement rate. This has inspired many farmers to return to coconut farming,” said Dinesh Choolanoor, a farmer in Palakkad.
Sources at the Coconut Development Board said there has been a spike in demand for coconut seedlings. The board had recently introduced a few incentive schemes like productivity enhancement and expansion of area which have evoked positive response.
The spike in coconut price was triggered by a decline in productivity caused by the severe drought in 2024 and adverse effects of climate change. But the state received copious rain from April which has helped improve production.
Simultaneously there has been an increase in productivity in Tamil Nadu also. While the retail rate of popular coconut oil brands has shown only a marginal decline, the decision of the state government to provide coconut oil at a subsidised rate of `349 during Onam season is expected to bring down the market rate.
The market rate of coconut in Thrissur market was `62 per kg on Monday, while the wholesale rate of coconut oil in Ernakulam market was `370 per litre. “The price of coconut oil has started declining with an increase in production. But wholesalers in Tamil Nadu are holding the yield expecting good returns during the Onam season.
The desiccated coconut producing units in Kithur in Karnataka procure coconut from Kannur and Kasaragod district. So the oil mills in Kerala are facing a shortage of quality copra,” said Cochin Oil Merchants Association office-bearers.
Current rates
Wholesale coconut oil price on Monday - Rs 370 per litre
Price of coconut - Rs 62 per kg