In Kerala it's the price, not coconuts, that fall

THIRUVANANTHAPURAM: There is a standing offer of a million rupees from the Kerala government for an invention to harvest coconuts from the palms’ lofty heights, without involving human climbing. Such is the difficulty in getting palm climbers in the state. What is falling, meanwhile, is the price of coconuts – with a thump at that.

While cardamom growers, rubber planters and even dairy farmers are counting their fortunes, coconut growers have been left stranded in more ways than one: The nuts cannot be harvested, the price is not remunerative, procurement plans do not seem to be realistic, production is down, and root wilt and mite are gnawing away at productivity.

The price, though, is the most pinching issue. In recent days coconut oil prices have appreciated to about Rs 50 per kg as against roughly Rs 42 per kg in October, but the price is still considerably lower than the Rs 65 per kg that coconut oil commanded in August 2008.

The price decline has been such that in some pockets of Kerala, eggs have sold for more than the price of raw coconuts, and now a single nutmeg is also capable of beating its coconut counterpart on the price front. Growers say that the unremunerative prices and the difficulty in harvesting coconuts present a deadly combination that is devastating the coconut-growing sector.

Kerala, the top coconut producer in the country, and Tamil Nadu the next largest producer, have both clocked declines in production in 2007-08. The Kerala production in 2007-08 was 5,641 million nuts, a decline of 413 million nuts from the previous year. In Tamil Nadu the production in 2007-08 was 4,968 million nuts, down by 461 million nuts.

Coconut Development Board Chairperson Minnie Mathew says a number of steps are being taken to rejuvenate the sector, including funding for removing old palms and replanting. “Over a three-year period, Rs 474 crore is being envisaged to be utilized for rejuvenating the sector”, says she.

In addition, there is a minimum support price of Rs 4,450 per quintal this year, up by Rs 790 per quintal from last year’s MSP, and a focus on diversification and value-addition.

Despite the sops, the ground reality is not very encouraging. The area under cultivation is on the decline, as is production. The scope for its substitution by other edible oils is hurting the prospects of coconut oil. The coconut palms face a similar predicament: With rubber fetching historically high prices, growers are being swayed into considering a different opportunity – to convert their coconut groves into rubber plantations.