Below Normal Monsoon To affect Coconut Production

14 September, Thiruvananthapuram

A major surge in production of coconut is not expected in the forthcoming season as the South-West monsoon was below normal in major coconut producing states like Kerala, Karnataka, Tamil Nadu, Andhra Pradesh, Odisha and West Bengal this year. As a result, arrivals of copra and coconut oil to the markets in the coming days will be lower in quantity, according to coconut development board here Monday .

With the offset of monsoon, tender nut market is also picking up momentum. Neera extraction by Coconut Producers Federations is also on the increase.

A close observation on the comparison of the daily price of coconut products withthe moving average for 60 days, indicates that the chances for a price fall is remote in the coming months. External forces have once again started playing in the market to deliberately bring down the price of coconut products. This is evident from the recent decline in price recorded for copra and coconut oil.

The copra and coconut oil market was ruling steady which started declining from September six onwards. Moreover, the export of coconut products from India in 2015-16 (April to August 2015) also recorded a steady growth, which is a clear indication of the fact that more coconut is being converted to value added products apart from copra and coconut oil.Whereas the import of coconut oil in 2015-16 (April to August 2015) recorded a decrease of 25%, compared with the same period during 2014-15.

With the start of festival season, the demand for coconut oil from upcountry markets is high. At a time when all the market forces are favourable for continuance of a steady price for coconut products, the temporary price fall observed in recent days is only because of the dirty tricks played by external lobbies in the market with an intention to procure more commodities at lower price, foreseeing the demand during the coming festival season.

Leave a Reply

Your email address will not be published. Required fields are marked *