COIMBATORE: Households and eateries across the state have started feeling the pinch as, along with other staple vegetables like onion and tomato, price of coconut too has almost jumped two-fold in the last few months.
The retail price of a coconut weighing around 500gm has crossed Rs 50 in Chennai as the farm-gate price (procurement rate) of coconuts in Pollachi and Anaimalai has more than doubled in four months from Rs 25 per kg in August to Rs 57 per kg in December. Traders say the price has hit an all-time high because of drop in crop yield due to various factors.
Pollachi is the main coconut hub of Tamil Nadu. From Pollachi, coconuts are sent to Kerala, and other major markets of Tamil Nadu including Chennai, Coimbatore, and Madurai.
N Palanisamy, a wholesale dealer from Pollachi, said, “For transporting a truck load of 10 tonnes of coconut to Chennai, it costs around Rs 35,000.”
According to sources, the retail price of coconut goes up by nearly 50% compared to the farm-gate price as two to three intermediaries are involved in the transaction and freight cost casts a huge burden.
If the farm-gate price is Rs 60 per kg, the retail price will be Rs 90 per kg, a mark-up of 50%. A medium-sized coconut weighs between 450-500gm and the retail price is Rs 40-Rs 45 apiece in cities like Chennai, sources said.
P Jeevanantham, a trader who procures coconut from around 75 farmers at Aliyar in Pollachi said, “We get orders from retailers and approach farmers. Based on the market price of the day, we negotiate with farmers and procure the produce. The price rose sharply in the second week of September after import duty on palmolein oil, soybean oil and refined sunflower oil was increased.
Expecting the price to rise further, most farmers did not pluck coconuts from trees. Meanwhile, in October, the prices declined as nuts from Mysuru started arriving in the market. But the price has gone up steeply now due to drop in yield in Tamil Nadu.”
In the second week of September, the price in Pollachi went up to Rs 55 per kg from Rs 25 in the last week of August. It fell to Rs 46 in October and remained stable till November end. Last Saturday, the price rose to Rs 57 per kg, sources said.
M Kumar, a coconut farmer from Arasur in Pollachi, said, “We get a minimum of 150 coconuts from a tree per year. Now, it has reduced to less than 80 nuts per year. Also, 60% of trees in my farm have weakened due to intense summer heat from March to May.
Also, root-wilt disease and whitefly pest attack took a toll on the trees, resulting in poor yield.” He added that farmers could not reap the benefit of the price rise as cultivation cost and disease control measures eat into their profit.
M Rajendran, a trader in TK Wholesale Market, Coimbatore, said, “The arrival of coconuts from Pollachi area has decreased by 40%. On last Monday, the wholesale price was Rs 60 per kg.”