The Agro Market Intelligence and Business Promotion Centre (AMI&BPC), Tiruchi, has advised farmers to hold stocks of coconut and copra as prices are likely to increase by September-October.
In an advisory to farmers, the AMI&BPC said the price of coconut at the Pollachi market is expected to rule in the range of Rs.16-18 a nut (550-600 grams) between August and September.
Citing an econometric analysis of coconut and copra prices over the past 12 years in Pollachi and 14 years in Avalpoondurai markets carried out by AMI & BPC, the Centre for Agricultural and Rural Development Studies (CARDS), Tamil Nadu Agricultural University, the advisory said price of coconut would be lower by one or three rupees in other markets in comparison to Pollachi market. Copra is expected to fetch around Rs. 100-105 per kg at Avalpoondurai regulated market.
Coconut is currently ruling at around Rs.28,500 a tonne at the Pollachi market. The price of coconut oil was in upswing over the last six months to touch Rs.146 a kg in May from Rs.99 a kg in December. Coconut arrives during June-July is expected to be low due to the continuous drought. Copra is ruling at Rs. 96 to Rs. 98 a kg in Tamil Nadu because of the increase in demand for coconuts from industrial users. Arrivals from Karnataka will end by August and festival season in forthcoming months will enhance the demand for coconut.
Hence farmers have been advised to hold stocks and sell the produce by September/October in anticipation of better price. Tamil Nadu stands second in the country in coconut production after Kerala and accounts for a cultivated area of 0.46 million hectares and 4.76 million tonnes of production annually.