Despite a significant drop in coconut prices, middlemen in southern Kerala are selling them at inflated rates, which is causing financial strain on consumers. The price of green coconuts has decreased from 78 rupees per kilogram to just 42 rupees, while dried coconut now sells for around 52 rupees per kilogram. This drastic reduction has not only affected consumers but also placed considerable pressure on farmers.
The situation is further exacerbated by the fact that the price of copra has fallen from 200 rupees to 150 rupees per kilogram, and coconut oil prices have dropped from over 500 rupees per liter to approximately 260 rupees. Farmers are reportedly facing a severe financial crisis due to these price drops, which some sources suggest could be linked to increased production levels in Tamil Nadu.
Interestingly, while prices have plummeted in northern Kerala—where green coconuts sell for around 40-42 rupees per kilogram—the southern districts are experiencing inflated prices ranging from 65 to 70 rupees. This discrepancy has raised concerns about possible market manipulation by middlemen who exploit these regional price differences.
Export disruptions to the Gulf region due to ongoing regional conflicts have also contributed to the current situation, affecting the overall availability of coconuts. Additionally, a recent heatwave has led to a sudden increase in coconut supply in the market, which might typically suggest lower prices; however, this has not translated into consumer savings.
The government is under increasing pressure to intervene and stabilize prices while providing support for farmers who have previously enjoyed a ‘golden period’ before this unexpected downturn. Observers emphasize that immediate action is necessary to prevent further financial distress among those reliant on coconut farming.
