COIMBATORE: Coconut farmers, who rode on a massive spurt in prices over the last few months, have hit a roadblock; a sudden price fluctuation hit the market, forcing some farmers to stockpile coconuts they harvested in recent days.
Farmers have alleged that a few big companies engaged in coconut oil trade, along with local traders, have brought down the procurement price artificially by forming a syndicate. They claimed that the traders got the price reduced by Rs 18 per kg from Rs 70 to Rs 52, on August 8. However, the farm gate procurement price subsequently rose to Rs 64 as of August 15.
P Jeevanantham, a coconut trader from Pollachi, claimed that two big coconut oil-producing companies are determining the coconut price in the market these days.
"Harvested coconuts are consumed in two ways — direct consumption for domestic usage and converting to oil through copra. As per the market prediction, domestic consumption is on the decline due to the high cost of coconut. Coconut conversion to copra has increased, resulting in a decrease of copra price to Rs 195 per kg as of August 8 from Rs 255 earlier. However, the fluctuation was abnormal as compared to the past. Given that the coconut price stood at Rs 25 per kg in 2023, even if the price falls below Rs 60, it is still a good price for farmers," he said.
KK Jothimani, a farmer in Subbegoundenpudur in Anaimalai taluk, said traders paid up to Rs 70 per kg until the first week of August.
"In two days from August 6, the farm gate price fell to Rs 52 per kg. It was an abnormal fall," he said.
Jothimani believes Kerala needs around 2 crore litre coconut oil ahead of the Onam festival.
"With the government providing subsidy-based coconut oil up to two litre per ration card, there is little chance for any decline in the price. There is no increase in the production of coconut at farms. Meanwhile, traders have increased the price again by Rs 10-12 per kg in the last three days," he said.
A Karthick Krishnan, a farmer and youth wing secretary of the farmers' association, said, "I have been keeping around 10,000 coconuts for the last two weeks due to high variation in the price. For more than a year, the price has been between Rs 68 and Rs 75 per kg. The sudden price drop for the produce has created uneasiness among the farmers."
The government has no role in fixing prices in the coconut market. Based on the Kangeyam oil market, the coconut price is fixed by the traders daily.