As the copra prices are expected to hover around Rs 100 to Rs 105 per kg at Avalpoondurai Regulated Market in Tamil Nadu, as against the prevailing Rs 96-98, farmers are recommended to store and sell both coconut and copra during September-October.
An analysis carried out by Agro Marketing Intelligence and Business Promotion Centre in Tamil Nadu Agriculture University, said the coconut prices in August-September will rule at Rs 16-18 per nut (550 to 600 grms) at farm level in Pollachi market and lower by Rs one to Rs three in other markets in the state.
Currently coconut is ruling around Rs 28,500 per tonne in Pollachi. Coconut oil prices continued its upward trend in the last six months from Rs 99 a kg in December, 2013 to Rs 146 in May 2014.
Quoting trade sources, the production of coconut during June-July will be lower due to continuous drought situation in the last two years, resulting in upward prices.
Copra prices are ruling at Rs 96-98 per kg in Tamil Nadu, due to the increase in demand for coconut from industrial users and household consumers, besides supply constraint of lower production, the Centre said.
The arrivals from Karnataka will end by August and festival season in the forthcoming months will push the demand in the domestic market.
Considering the scenario, the Centre carried out an econometric analysis of coconut prices that prevailed in Pollachi for the last 12 years and Avalpoondurai for the last 14 years, for the benefit of anxious farmers.
Tamil Nadu stands second in coconut production after Kerala, with 4.76 million tonnes, the Centre said.
