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Coconut and Copra prices to Increase in September 2013

Coconut and Copra prices to Increase in September 2013

Coconut is used in our country as a source of food, drink, fibre, fuel, etc. Indonesia, Philippines and India are the major producers of coconut in the world. Brazil, Sri Lanka and Thailand are the other producers. According to First Advance Estimate (2012-13) of Ministry of Agriculture, Government of India, coconut was grown in a total area of around 2.13 million hectares with a production of 15.35 million tonnes of nuts. Kerala is the main coconut producing state with a contribution of 35.92 percent area and 25.89 per cent production followed by Tamil Nadu which accounts for around 21.81 per cent of area and 31.02 per cent of production. In Tamil Nadu coconut is grown in Coimbatore, Thanjavur, Kanniyakumari, Vellore, Erode, Theni, Tirunelveli, Krishnagiri, Salem and Madurai districts. From the total production 65-70 per cent goes for oil purpose only. The price of coconut and copra are usually influenced by the price of coconut oil prevailing in the wholesale markets. The variations in quality of matured coconut viz., size of nuts, copra content, oil content etc. determine the price of coconuts.

According to trade sources, production is less in this season by almost 30 per cent. Arrivals from Karnataka have started and it will continue upto August. As per trade sources the fall in coconut oil price was due to the low corporate demand, reduction in local consumption, and reduced movement of upcountry markets besides import of cheaper edible oils. This led to surplus availability of coconut oil in the market. At present government is to procure copra at the price of Rs.52.50 per kg. In the wholesale market coconut oil is priced at Rs.63 per kg, while copra and coconut are getting a price of Rs.45 and Rs.10-12 per kg., respectively.

          Given this scenario, farmers are interested to know the prices that are likely to prevail during August, September 2013 for coconut and copra. To help farmers in order to take proper marketing decisions, based on the market survey and prevailing market sentiments, an econometric analysis of coconut  and copra prices that prevailed in Pollachi and Avalpoondurai  markets was undertaken by Domestic and Export Market Intelligence Cell, Tamil Nadu Agricultural University. As per the results of the analysis the price of coconut and copra during August, will be stable and in September 2013 price may increase in Pollachi and Avalpoondurai area. During festival seasons i.e., during Dhasara and Deepavali the prices would increase. From October onwards increased prices could be realized.

In August coconut will attract a price of Rs.6-7 per nut at farm level and it will be around Rs.47 per kg for copra. This is for coconut in Pollachi market and copra in Avalpoondurai and other markets. Prices of coconut will be lower in other markets comparing pollachi which always leads in prices due to better quality of nuts. In September the prices of nuts will be higher by Rs.1 to 2 at farm level and that of copra would be revolving around Rs.50 per kg. Hence farmers are recommended to take their selling decisions accordingly.

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Please note that this is the opinion of the author and is Not Certified by ICAR or any of its authorised agents.