Hope for Coconut Farmers – with Coconut Prices Rising

KOCHI:
The Commodity market for Coconut oil and Copra is reviving up in the last few days with the rising prices of these products in the market. The scenario is expected to continue as the arrival of coconut and coconut products is low in the major coconut markets.
According to the statistical survey conducted by Coconut Development Board, the All India Production is
expected to fall by 5% in 2016-17. But the actual decline in production of coconut presumes to be much more with the mercury levels rising and the prevailing drought like conditions in many areas.
There is higher demand for tender coconut, with the onset of summer and oppressive heat. The receding nature of coconut market was the created effect of the bulk buyers purposefully staying away from the market with the intention for a price fall.
Irrespective of all these attempts by them and other middlemen, coconut market has shown renaissance and now
the prices are actually picking up. Farmers should also know that these bulk buyers can’t stay away from the market for a long period and their come back to the market too shall have a positive effect on the price.
With the International price of coconut oil ruling higher than the domestic price, there is hardly any scope for import of these products. While the average monthly international price (cif, Rotterdam), for the month of March 2016 was 145 US$ the domestic price (Kochi Market) ruled at 127 US$ per quintal.
Further, the export of Coconut Oil and Desiccated coconut is showing an increase from the beginning of 2016.
All these factors in the market are indicating a positive influence on the price of coconut.
Hence, FPO’s are directed to pass the realistic information to the coconut farmers and advise them against hard selling of their products. Since the trend for the price is to go up in the coming days, FPO’s shall take necessary adoptive measures to take up primary processing and extend the shelf life of the product.