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With the summer nearing, the demand for tender coconut is expected to increase in the coming months. The price already has increased to Rs 25-30 a nut in the last one month.
According to coconut vendors in Kerala, prices have gone up due to higher demand from the southern states.
This rise in demand for tender coconut from upcountry markets has led to a drop in copra processing. In Kerala, the key producer of copra, high raw material costs and poor availability had hit production. Vendors said the situation might affect the supply of coconut oil in the coming months.
Majo Jopseh, a tender coconut vendor, said quality coconut was not readily available due to higher demand for tender coconut from upcountry markets. The tourism sector is also facing issues of shortage as a majority of tourists prefer tender coconut water, while its availability had become a problem.
Sources said it was unlikely copra processing would improve in the next two-three months. Export of fresh coconut to Gulf nations, dry coconut to Pakistan and virgin coconut oil to the US have been on the rise since December 2014.
The Coconut Board in a release stated the export of virgin coconut oil to the US was witnessing an unprecedented rise since December 2014. According to the board, higher exports were due to formation of coconut farmer producer organisations (FPOs) for dealing with aggregation of produce and arranging primary processing and marketing.
In Tamil Nadu and Karnataka, the FPO’s had already made arrangements to supply fresh tender nuts to the upcountry markets. It is expected 20-25 per cent produce shall be harvested and marketed as tender nuts, which would reduce the supply of mature coconut for making copra, vendors stated.
The Kerala Food Safety Commissioner’s special drive to prevent adulteration of coconut started showing positive results. Entry of adulterated coconut oil to Kerala, the leading consumer in the country, is falling, which is expected to reflect on the price in the coming days, the CDB said.
Increase in price of coconut oil has triggered the advent of adulterated coconut oil in some parts of Kerala. Food Safety officers even spotted impure oil in branded product category.
It is learnt consumers in Kerala are increasingly preferring rice bran oil over coconut oils due to the widening price gap. While rice bran oil is available at Rs 80-95 a litre, coconut oil price is hovering around Rs 170 every litre.
