In Kerala, rambutan growers are facing reduced buying interest from traders due to falling market prices in neighbouring Tamil Nadu. For farmer Noby Thomas of Kalaketty in Kottayam, his 80 rambutan trees, now nine years old, have produced seven to eight tons of fruit this season. However, with Tamil Nadu prices at about US$1.92/kg (₹160) and local offers at US$1.68/kg (₹140), traders say they cannot harvest without incurring losses.
Harvesting costs, protective nets, and transport push operational expenses to around US$2.05–2.17/kg (₹170–₹180). Farmers estimate they need to sell at about US$2.41/kg (₹200) just to break even.
According to Noby, the problem is widespread. Suresh, a grower from Pinnakkanadu with 10 acres under rambutan, has already harvested 7,000 kg this season but expects a loss of about US$24,000 (₹2 lakh). Last year, he sold at US$1.63/kg (₹135), but this year, buyers from Sengottai in Tamil Nadu's Tenkasi district are pulling back. Normally, much of the crop goes to Chennai and Bengaluru, but demand is weaker this season.
Renny Jacob, chairman of Homegrown Biotech, says that even at US$1.45/kg (₹120), an acre can gross US$4,820–6,020 (₹4–5 lakh) compared to US$241–361 (₹20,000–₹30,000) from rubber. One acre with 30–50 trees can yield 3,000–4,000 kg in a single annual harvest if the crop is managed well.
However, production growth has outpaced market capacity. Renny estimates that about 500,000 trees in Kerala now yield 20,000–30,000 tons annually, with a turnover of US$18–24 million (₹150–200 crore). With better market access and value addition, he believes the figure could rise to US$361 million (₹3,000 crore).
This season, intermediaries offered US$1.68/kg (₹140) to farmers, up from US$1.45/kg (₹120) last year, expecting strong sales. But higher net costs have pushed their breakeven price to US$3.61/kg (₹300). Retail prices have reached US$3.61–4.21/kg (₹300–₹350), reducing consumer purchases.
Farmer M C Saju of Koothattukulam added that many smallholders cannot afford nets or find buyers. He suggested making rambutan more affordable, like apples or grapes at US$1.20/kg (₹100), noting that even at US$0.60/kg (₹50), a farmer could profit as a single eight-year-old tree can yield 300 kg, worth about US$361 (₹30,000).
With nearly one million trees in various growth stages, the supply will increase further. Renny noted that intermediaries remain essential for moving large volumes of this perishable fruit, and growers must sell at US$1.20–1.45/kg (₹100–₹120) to avoid distress sales. While imported Thai rambutan can fetch US$4.82–6.02/kg (₹400–₹500) in Delhi, Kerala's growers will need to adjust prices, manage supply, and seek new markets to maintain the sector's viability.
Source: New Indian Express
