Coconut production dropped during the pandemic after transportation and logistics got hit and coconuts were turned into copra for extracting oil. Subsequently prices dropped, a trend which lasted till August 2024.
| Photo Credit: SPECIAL ARRAGEMENT
The steep rise in the price of coconut was not a sudden phenomenon but a continuation of what the sector has been experiencing since around 2020 with the outbreak of the pandemic, said a senior official with the Coconut Development Board (CDB).
In the wake of the disruption in coconut market as transportation and logistics got hit during the pandemic, almost everyone turned coconut into copra (dried flesh of the coconut) to extract oil. This didn’t help and a crash in coconut price ensued in March 2022, a trend which lasted till August 2024.
“Consequently, the production dropped not just in India but across all major coconut producing countries in the equatorial region like Indonesia, Philippines, and Sri Lanka. Climate change, drought and drastic difference in temperature also contributed to the drop in production,” said the official on condition of anonymity. With the drop in prices, negligence crept into the upkeep and maintenance of coconut farming. Measures like applying of fertilisers faltered, and this proved an additional blow.
Demand for tender coconuts
As people turned increasingly health conscious post pandemic, there was a soaring demand for tender coconut from north India. This led to the despatch of truck loads of tender coconuts from coconut producing centres in States like Karnataka and Tamil Nadu to north India. Production further dropped, as farmers were not waiting till coconuts were ripe for harvesting, as tender coconuts were fetching them great prices, thus impacting the availability of coconuts. The proliferation of industrial units dealing in desiccated coconut powder, coconut milk, virgin coconut oil etc and their corresponding increase in exports during the previous fiscal further contributed to the price rise.
“The trend of rising price was noticed since last September. From what can be gauged from the market, coconut availability is returning to normal in places like Tamil Nadu. We expect the prices to stabilise in another two to three months,” said the official. Ironically, now with the price still on the rise, the farmers are left with far fewer coconuts to cash in though.
Published – July 05, 2025 05:11 pm IST
