Copra industry facing crisis in Kerala

The copra industry in Kerala, the land of coconut trees, is facing an acute crisis with farmers turning to other crops due to declining prices. From as high as Rs 6,000 per quintal two years ago, copra prices have fallen to Rs 3,150 now, forcing farmers to give up coconut cultivation in Kozhikode, Alleppey and Cherthala, the major coconut belts. "The state Government's failure to implement its decision to withdraw four per cent VAT, increasing cost of manure and several other factors have contributed to the present pathetic situation," said P.P. Abdurrehman, Vice-President of Malabar Produce Merchants' Association. "Tamil Nadu, where there is no VAT on the product, is giving better subsidies to its growers like free power and water. Also, the price of manure is comparatively low in that state enabling it to take over the prime spot in exporting copra to the northern states now," he said. Exports from Kozhikode, which was once known as copra hub of the country, have come down from 150 bags (each bag comprising 50 kgs) a day to a mere 20 to 25 bags now, clearly indicating the sharp downfall, he said. Though the coconut development board is trying hard to revive the sector by introducing fair measures to suit the growers, nothing concrete had emerged so far resulting in the downtrend, says Abdurrehman. "Labour charges are also very high here compared to neighbouring states affecting the farmers who are already threatened by other factors," he says. Expressing the hope that the state could regain its premier position in the market, he said, "the Government should initiate urgent steps to save the market from crisis by introducing a fair amount of subsidy". "Adding to the existing problems is the 'lorry-turn system' introduced by truck owners in the state recently," says Sasi, a farmer in interior Vatakara, who has to wait for lorries so that his produce is carried to other states. "Farmers are no more interested in coconut growing as we have to pluck them within 40 days for exporting. But then, we have no appreciative returns for our produce now," he said. "While copra used to be exported to Northern states on a daily basis from here, for the last seven days no load has been despatched," he said.