Prospects appear dim for an improvement in Kerala economy which continues to suffer from a variety of factors like fall in cash crop prices, shrinking foodgrain cultivation base and acute power shortage the state planning boards economic review for 1997 indicates.
Coconut and rubber, the two main cash crops of Kerala, showed increase in production and productivity. But the fall in their prices are still coming in the way of the economy getting the true benefit out of the spurt in production.
The total production of coconut was estimated to have gone up from 5,155 million nuts in 95-96 to 5,759 million nuts in 1996-97.
The prices of copra, however, continued to register a declining trend since 1990s, though it made a marginal improvement in 1997.
The fall in prices was due to the spurt in supply following expansion in cultivation area and production of coconut not only in Kerala but also in other parts of the country.
Liberalised import of cheaper substitutes had also contributed to the crash in prices, the review says.
