An early scorching summer in much of the country has resulted in a steep rise in demand for tender coconuts, especially in the south. The price of a nut has gone up to Rs 30 in major metropolitan cities. The current average price is Rs 25, up from Rs 15-18 just a few months earlier.
Thanks also to a very active domestic tourism season and despite higher output, there is an acute shortage of tender coconuts. A strong shift towards natural drinks like tender coconut water due to health concerns has also helped raise demand sharply. Tamil Nadu supplies the highest number of tender nuts, followed by Karnataka and Kerala. But producers are not in a position to supply automatically in line with market demand.
A major chunk of coconut farms in Karnataka and Tamil Nadu concentrate on producing the tender variety. This is less so in Kerala.
Mathew Joseph, a local vendor here of tender coconuts says: “Supply from Tamil Nadu has come down sharply, as they have to supply to the entire south India.”
He says local supply is low as copra production is active in the summer season. “Our stock ends by the afternoon, when summer heat is at its peak and we cannot sell in the evenings when tourists arrive in large numbers,” he says.
According to Thalath Mohammed, president, Cochin Oil Merchants Association, copra output in Kerala had not been affected, as coconut production is at a peak this year. “Extremely hot climate makes copra producers happy and supply of both copra and coconut oil are at a peak now. There is good demand for coconut oil, as it is the cheapest edible oil in the country for the time being. Most edible oils now attract a price tag of Rs 100-plus per kg in retail selling, but coconut oil costs Rs 70/kg. So, blending of coconut oil with other oils like sunflower oil and groundnut oil is on the rise. Hence, there is good demand for coconut oil from the north Indian market, he says.
“As the supply from Andhra Pradesh, Kerala and Tamil Nadu has increased heavily in this season, the oil price remains on the lower side,” he adds.
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The wholesale tag in Kochi is Rs 6,500 per quintal, down from Rs 7,000 per kg some weeks ago.
In Kerala, demand for coconut oil is on the rise as palm oil, the alternative cooking medium, is now Rs 75 per kg. Thalath said there was high demand for coconut oil from fast moving consumer goods makers but a strong supply chain has kept prices in check. He expects a steady price for the time being, but a change in climate may bring a shift.