India: Coconut production to rise 10%

Coconut production is expected to be robust this year due to good demand for tender coconut and coconut oil across the country. The main production season is from January till March. In Kerala, the normal annual production is around six billion nuts and is likely to go up 10 per cent this year, according to growers’ estimates from various centres. As the average price of tender coconut has increased to Rs 20 each, farmers are active in producing this commodity, especially in Karnataka and Tamil Nadu. Traders told Business Standard production would be higher in Tamil Nadu this year as the acreage had increased. The area under cultivation has increased to 390,000 hectares from 367,000 hectares last year.

Likewise, acreage has increased in Andhra Pradesh and Karnataka during the past three-four years. Tamil Nadu has the highest productivity (nuts produced per hectare) in India at 13,771 nuts. In Andhra, this is 9,327, while in Kerala this is 7,365 nuts only, though Kerala tops the chart with 790,000 hectares in area under cultivation. As the production is on a rise, coconut oil is on a downward mode. The wholesale price is steady since the last few days at Rs 7,650 a quintal here. Market experts do not view an upward swing in the price line, but expect a reduction due to the seasonal increase in production.

Coconut oil peaked to an all-time high of Rs 10,400 a quintal in May, finding a southward route after that. According to the data by the Cochin Oil Merchants Association (COMA), the market touched the lowest at Rs 7,500 a quintal in October, peaked to Rs 8,400 a quintal in November and Rs 8,300 a quintal in December. As the supply from Tamil Nadu increased and due to a sharp fall in demand, the market plunged below Rs 8,000 a quintal mark in the last week of December. On December 27, price fell to Rs 7,750 a quintal and then to Rs 7,650 a quintal.

According to Thalath Mohamed, president, COMA, the fall in demand from north India had affected prices in December. He added that according to the current parameters, the price might move on a rather steady note, with minor fluctuations. As supply from Kerala increases, market experts see a further downward movement of prices when summer season starts.

Source: business-standard.com