Coconut farming in South India is experiencing a paradox of prosperity. Despite an increase in coconut prices, with coconuts reaching $0.96 per kg and coconut oil over $4.80 per liter, Kerala's production has declined. Mill owners and exporters are facing issues due to a scarcity of nuts, complicating market pricing dynamics.
A leading export firm owner mentioned, "We procure coconut from both Kerala and Tamil Nadu. There has been a steep decline in productivity, which has triggered scarcity in the market." Export activities are affected, with work shifts rescheduled due to coconut unavailability.
Several factors contribute to this situation. Small farmers have abandoned traditional practices like manuring due to high costs and low procurement rates. The service costs of climbers, ranging from $0.84 to $1.20 per tree, are challenging for growers. A farmer from Palakkad remarked, "Productivity has declined from 50 nuts to 10-15 nuts per tree. Climbers charge $0.84–$1.20 per tree, which is costly."
Coconut Development Board (CDB) aims to address productivity decline, with Rs 20 crore (US$2.4 million) spent annually on initiatives; however, 38% of farms in Kerala face issues such as age and pests. The Board has trained climbers, yet shortages remain.
In Kerala, around 800 units produce diverse coconut-based products, impacting coconut availability. Exports rose by 25% in 2024-25, with products worth over $518 million exported, around $124 million via Kochi port. Activated carbon makes up 63% of exports, with increasing demand, notably to the US. UAE exports surged post-free trade agreement, totaling $75.7 million in 2024-25.
Source: New Indian Express
