The Hindu : Business : A mixed year for coconut sector

Online edition of India's National Newspaper
Thursday, Jan 04, 2007
ePaper

Business

Business

A mixed year for coconut sector

Special Correspondent

KOCHI: Despite record production, the coconut sector continues to be riddled with problems. Unless bold steps are taken by the stakeholders, including cooperative societies, things would continue to be bleak on the coconut front, industry sources here feel.

The year 2006 was a mixed year for coconut. The year started with a very low price of Rs.4,300 a quintal in January for coconut oil. The price of copra also ruled below the minimum support price for several months. From September 2006 onwards, the prices have slowly increased and at present the price of copra is above the minimum support price. Good rainfall in most of the coconut growing States in the last two years has also helped to boost production. The crop forecast made for the year 2006-07 projects a production of 14.37 billion nuts, which, if realised, will become the highest ever production achieved by the country, notes Minnie Mathew, the chairperson of the Kochi-based Coconut Development Board (CDB) in a communication.

According to her, two products showing great promise are tender coconut and virgin coconut oil. The adverse publicity surrounding colas, increased tourist arrivals and the promotional efforts made by the CDB to increase the consumption of tender coconut water have created a very favourable climate for tender nut and resulted in a phenomenal increase in consumption.

The efforts made by the Board to popularise the technology for processed tender coconut water have been successful, she says. Seven applications for transfer of the technology have been received in recent months. There is also a growing recognition of the tremendous health benefits of virgin coconut oil, which can be used for addressing problems such as obesity, skin disorders, etc. The new legislation introduced by the U.S. on the labelling of Trans Fats will help to give a new boost to traditional coconut oil. The increasing use of palm oil as a feedstock for bio-diesel production may also create a new demand for coconut oil.

The Board feels that in order to sustain the price of coconut, the authorities should step up value addition in a big way.

At present it is estimated that only 5 per cent of the total coconut farmers are getting the benefit of value addition. The State has a strong cooperative movement and it is of paramount importance that the cooperative sector acts as a trigger for stepping up value addition in coconut.

Printer friendly page
Send this article to Friends by E-Mail

Business