Coconut prices go up steeply due to low production

Visakhapatnam: With drastic dip in the coconut production in the Andhra Pradesh, the prices of coconut have been skyrocketing. Though the prices have been increasing, the coconut farmers are not getting good price. 

Due to involvement of middlemen at various stages in the coconut business,  the product cost is reaching eight times against the original  price. Meanwhile, the quality of the AP brand coconuts is not competing with the Kerala mark coconuts. Businessmen are rushing to Kerala and Tamil Nadu and transporting the product to the local markets.

Andhra Pradesh is the fourth largest producer of coconuts after Kerala, Karnataka and Tamil Nadu. Konaseema is the most popular location for coconuts in the state. The region is producing lion share of the total production in the state. It is estimated that 14,400 nuts are being produced per hectare in the state. However, during the last three years, there is a drastic fall in coconut production in the state. According to the experts, deficit rainfall coupled with decrease in the number of trees are reasons for fall in production. In addition, youth are not coming forward for cultivation of coconuts. 

As part of promotion of the crop, the Central government established CoconutDevelopment Board. However, the traders are saying that the extent of the cultivation of the coconut is coming down not only Andhra Pradesh, but also in other places in the country.  “With the decrease in supply of tender coconuts from the parts of North Andhra and Godavari districts, the price of eachcoconut in the market is touching to Rs 30 to 40. However, the businessmen are purchasing the product at the grooves each one at Rs at 4 to 6 according to the quality. 

“It is true that we are purchasing the product at Rs 4 to 6. But, labour charges to cut the nuts, loading and downloading charges and transportation charges  are added to the charges of the product,” SalardiRamunaidu, coconut wholesale trader  said. Earlier, the retailers used to purchase coconuts directly from the wholesaler. But now, the retail businessmen are setting up push carts at some important locations and distributing the product and arranging the salesmen on daily wages.

With this, the product cost again increases with the local transportation to the pushcart and the retailer adding at least Rs 2 to Rs 4 on each nut for profitability. Finally, the more watered nut is being sold at Rs 40, Ramunaidusaid. Due to the failed monsoon in 2017, the production of coconuts has come down across the State.  According to the estimations, the drop of the production was 30 percent following the dry spell. Earlier farmers used to sell tender coconut for Rs 15 per coconut, now they sell between Rs 30 and Rs 40.

“The retailers are selling the coconut water of 800 ml bottle at Rs 70. In fact, the consumers are feeling that the bottle capacity is one litre. Exclusive bottles are being made for coconut water. As there is a drastic fall in the coconutproduction, the cost is touching the top point due to labour charges and transportation, Y Govindu, coconut businessmen added.

BY V K L Gayatri