: The Coconut Development Board (CDB) predicts that the decrease in price of coconut oil and copra observed in recent days is expected to get reversed from the beginning of November, mainly due to a decline in production of coconut in major southern States because of poor monsoon this year.
At the same time, demand for coconut oil from north Indian markets is increasing because of the festive season, says the CDB in a statement on Friday.
“In Kerala, a spurt in demand for coconut is expected with the Sabarimala pilgrimage season starting by mid-November.”
The statement said that export of coconut value-added products recorded an increase of 5 per cent in the first half of this fiscal compared to the corresponding period last year, which shows that more coconut is diverted for the manufacture of value-added products.
At the same time, the import duty on crude edible oils was hiked from 7.5 per cent to 12.5 per cent and that of refined edible oils from 15 per cent to 20 per cent from September. That will bring down edible oil imports, which will lead to a rise in demand of domestically produced edible oils such as coconut oil, which in turn will push up the prices of the latter oils, the statement said.
Also, arrival of coconut, copra and coconut oil are expected to be low from Kerala and Tamil Nadu, because of the start of northeast monsoon in full swing from next week.
The CDB calls upon farmers to engage in primary processing of the produce. Coconut producer companies should concentrate on manufacture of good quality, non-adulterated branded coconut and virgin coconut oil. Further, there is great potential for coconut milk, which ensures three to four times income from coconut.
The statement says it is high time that the farmers focussed attention on value-addition to tap the new opportunities emerging and earn better price for the produce.
