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Ernakulam: As the gloomy phase for coconut farmers continue for the past 5 months, international factors, especially the huge demand for coconut in European nations could help the prices of coconut spike in the coming days in Kerala.
Coconut output has been inching up over the past couple of months, due to which fears of a possible price drop have gripped farmers in South India.
“In the last 2 months there was a sharp decline in coconut prices. Prices fell by Rs 85 by kilogram dashing all hopes. We are hoping that the central government could increase the MSP of copra to Rs 1000 per quintal”, said Jayan Krishnan, a coconut farmer and trader in Palakkad.
The retail price of coconut, which touched Rs 90 a kilogram in September, has gradually declined to Rs 55-60 in the first week of January. Following a recent field visit, the Coconut Development Board (CDB) concluded that it expects production to rise sharply in the coming months. Growers fear that a spike in output will lead to a price crash.
According to farmers in Kerala, though coconut prices have been declining for the past two months, the Sabarimala season helped avert a crash. Now, with the pilgrimage season set to end by January 20, there is apprehension of prices declining further. However, CDB authorities assure that demand will extend till Sivaratri.
Export demand in industrial sector a ray of hope
Meanwhile, the demand for coconut in the industrial sector offers a ray of hope. Added to that, export demand for activated carbon, desiccated coconut and coconut milk has been rising, with Europe emerging as a promising market for Indian coconut.
Over the last ten years there has been a notable increase in demand for coconut products throughout Europe. The application of coconut in cosmetics, personal-care products, and even medication has grown beyond its use in food. Coconut oil has become a popular substitute for cooking, baking, and frying oils in European kitchens due to its health advantages and high smoke point. Further, its moisturizing properties have made it a much sought-after ingredient in skincare and hair-care products.
According to a study, the European coconut products market is expected to grow $2 billion in value by 2029. This is expected to be driven by increased adoption of plant-based, vegan, or flexitarian diets.
