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Coconut and coconut oil prices in Kerala are on an increasing spree due to acute shortage.
The price of a large, un-husked coconut has now increased to Rs 20-22, in major producing centre while this is Rs 35 in the High Range districts like Pathanamthitta and Kottayam.
Even smaller coconuts are having a price tag of Rs 20-22 in retail trading in these districts. This affects the family budget of an average Keralite as coconut is an essential ingredient in most recipies. Although Kerala is now in the midst of coconut season, production is rather low this time due to various reasons.
As the price was very low during the last couple of years, coconut plantations have been abandoned in the central districts. This coupled with transforming coconut plantations into housing areas reduced the acerage. There is also serious shortage of labourers to climb the trees and drop ripe coconut.
The wage for climbing trees has increased to Rs 40 each tree. According to KV Paul, a farmer in Ernakulam district, labour shortage is a severe problem and at least 20 per cent of the production is being lost due to this.
In the Malabar region also, production had dropped 40 -50 per cent during this season and the summer heat was affecting plantations. He said coconut production was likely to pick up by June, in tandem with the monsoon. So, prices may continue to be on the higher side till May, he added.
Thalath Muhammed, a coconut oil dealer in Kochi, told Business Standardcoconut prices were on an upward trend and expected a change in trend in April, when the season starts in Tamil Nadu.
Even in Tamil Nadu, the largest producing state in India, production was rather low. Coconut oil price at the wholesale level almost doubled during this month. It was at Rs 7,000 per quintal in January 2013.
On Tuesday, the Cochin Oil Merchants Association quoted Rs 12,500 a quintal, while it was at Rs 11,450 last month. The sharp rise in the price of coconut oil has fuelled the price of palm oil, also used in cooking. Retail price of palm oil has now increased to Rs 80 a kg, from Rs 65 a month ago.
Selvaraj, a retail coconut oil dealer, said there was an apparent shift in the consumption towards palm oil, as the retail price of coconut oil was Rs 140 a kg.
He also said the adulteration of coconut oil was on the rise due to the current price rise. This is a common phenomenon when price rises, he added.
Palm kernel oil, which is very cheap in markets, is mixed with coconut oil for retail trading. Thalath said coconut oil price in Tamil Nadu was ruling high due to serious shortage. In Kankayam, the largest coconut oil market in India, coconut oil price is Rs 12,500 a quintal in wholesale trading.
Under these circumstances, supply from Tamil Nadu had slowed down.
Normally, the price in Kankayam is lower by Rs 100 a quintal than the prevailing Kochi market. Now, both the markets are on a par, he added.
