Coconut Prices Double Despite a Rich Harvest as Exports Jump 145% y-o-y.

KOCHI: The price of a coconut, a must for all auspicious occasions, has doubled this Diwali as exports to neighbouring countries eat into India’s bumper harvest. A coconut that usually sells for Rs 5 is now traded near Rs 10.

Traders are more keen on exports because foreign buyers are willing to pay up to Rs17/kg for fresh nuts, triggering a 145% rise in fresh coconut exports over last year. That has also improved returns per hectare for coconut growers even though production has once again crossed 15,000 million nuts. Tamil Nadu, which is India’s leading coconut market, is catering to the needs of the domestic market as well as neighbouring countries including Pakistan, Bangladesh and Nepal.

According to Talat Mehmood, a leading coconut oil trader, a more expensive palm kernel oil, a close substitute, is also forcing the food and soap industries to turn to cheaper coconut oil.

The production is now pegged at 15,729 million nuts for 2008-09 as per the final figures released by the Coconut Development Board. This shows a over 6% rise over the previous year. The productivity has shot up to an all-time high of 8,303 nuts per hectare compared to 7,747 nuts per hectare in the previous year. In 2010, a 15% deficit in production is seen.

Productivity has gone up even as the extent of arable land for coconut cultivation has decreased. Thomas Mathew, chief coconut development officer, Coconut Development Board (CDB), told ET that good weather conditions have led to the lower incidence of Mite disease in the crop, resulting in higher production.

Though Kerala leads with 5,802 million nuts, the gap in coconut production between Kerala and Tamil Nadu has narrowed to 37 million nuts. Both Karnataka and Tamil Nadu have witnessed significant improvement in production. In terms of productivity among the major coconut producing states, Tamil Nadu leads with 13,771 nuts per hectare as 60% of the crop is grown in well-irrigated area. With the launch of a CDB initiative for re-plantation by removing diseased trees, the productivity is expected to go up further.

Source : economictimes.indiatimes.com