In southern Thailand, many coconut suppliers are deep in debt. There are 40 million coconuts in stock and few buyers. Coconut lhong, or middleman-run warehouses in the Thap Sakae district in Prachuap Khiri Khan just south of Bangkok, have debts of more than 200 million baht (€5.2 million).
The reason for the large amount of unsold fruit is that many factories have been buying imported coconuts instead of the locally-grown ones from the warehouses. More than 30 lhong are facing huge losses this year, while about 80% of the people in Thap Kasae district (south of Bangkok) make money from growing and selling coconuts.
Issara Judphai, from Issara Coconut Lhong, said as well as the oversupply, the price of coconuts had dropped this year. Last year the retail price was 15 baht per coconut (€0.39), but this year it was only 4 to 5 baht per coconut (€0.11-0.13).
He said he normally stocks 10,000 coconuts in his warehouse at a time after buying them from farmers. In one month he normally turns over 300,000 coconuts.
Source: atimes.com
