Across South India, coconut prices have significantly increased, escalating from ₹15-25 to ₹80-100. This surge is attributed to a combination of factors, including disruptions in the supply chain caused by the pandemic, the effects of climate change, and heightened demand during festivals like Onam and Ganesh Chaturthi.
Several elements contribute to this price hike. Coconut production has fallen by 20-25% in recent years due to climate change. Erratic rainfall and high humidity have also contributed to decreased yields in Andhra Pradesh, Tamil Nadu, and Karnataka. Pest attacks have further exacerbated the problem, with farmers reporting a 30–40% decrease in yield. Moreover, many farmers are migrating to urban areas for better opportunities, leaving their fields unattended, which allows monkeys and other animals to destroy crops. The rising costs of fertilizers and increased labor charges for coconut pluckers are also driving up costs.
The demand for coconuts has also seen a sharp increase. The growing acceptance of coconut oil in the United States market has led to increased exports. Similarly, the demand for coconut products like desiccated coconut powder and coconut milk has risen in the European market since the pandemic. Within India, the demand for coconuts for puja and related rituals in temples is also on the rise, with truckloads of coconuts being transported from coconut-rich regions in the south to places as far away as Jammu and Kashmir. Moreover, as people have become more health-conscious, the demand for tender coconuts from North India has increased, leading to the dispatch of truckloads of tender coconuts from Karnataka and Tamil Nadu. Farmers are also choosing to sell tender coconuts because they fetch quicker and higher profits, which impacts the availability of mature coconuts.
The price increase has had a ripple effect on various sectors. Small-time eateries and households are struggling to manage their budgets. For instance, the popular snack "Kozhukatta", a rice ball filled with shredded coconut and jaggery, has disappeared from the Kudumbashree's Janakeeya hotel menu due to the high cost of coconuts. Temple rituals in Kerala are also being affected, with coconut offerings down by nearly 30% at Thiruvananthapuram's Pazhavangadi Ganapathy Temple. Caterers in Kerala are charging around ₹500 per person for an average Onam feast with 23 dishes due to the rising costs of coconut oil and raw coconuts. Some hotels have been forced to reduce the number of coconuts used in side dishes or shift to alternative oils for frying fish as coconut oil prices have surged.
However, there is some optimism that prices may stabilize in the coming months. Officials expect coconut availability to return to normal in places like Tamil Nadu. The Goa State Horticulture Corporation Ltd is also set to import one lakh coconuts from Karnataka and promises to make them available at a subsidized price to provide relief during Ganesh Chaturthi.
The current surge in coconut prices highlights the interplay of various factors, from climate change and supply chain disruptions to increased demand and changing agricultural practices. While the festive season has further amplified the price increase, the underlying issues need to be addressed to ensure stable and affordable coconut prices in the long term.
