Coconut Price: Big fall in the prices of coconut and copra, why the situation changed from farmers to businessmen

Reached record high last year coconut oil And the prices of Copra are now continuously coming down (Coconut Price). The effect of increased arrivals and changed conditions in the market is visible on farmers, traders and consumers. After this softening of prices, the market equation has also started changing.

Experts believe that this time due to increase in production there is sufficient supply in the market. This is the reason why the situation of high prices like last year is not being seen at present.

Coconut Price fell far below the record level

In Kerala market, the price of coconut oil is trading at around Rs 227 per kg and copra at around Rs 131 per kg. In July last year, coconut oil had reached Rs 393 per kg and copra Rs 261 per kg. In comparison, this time a big decline in prices has been recorded.

Supply in the market increased due to increase in production

According to industry experts, the supply in the market has strengthened due to increase in the arrival of raw coconut in major producing states. Efforts to create artificial shortage due to excess production have had limited effect and prices remain under pressure.

Different effects on farmers and mills

While farmers are facing the pressure of rising wages and production costs due to fall in prices, the processing work is going on smoothly due to mill operators getting adequate quantity of copra. Due to this, the availability of raw materials has become better than before.

Slowdown in demand and exports also became the reason

Experts say that despite the decrease in the price of raw materials, the demand in the retail market has not increased as expected (Coconut Price). At the same time, due to tension in West Asia, there has been a slowdown in the export of value added coconut products.

There is additional pressure on the prices of coconut oil and copra due to arrival of more goods in the domestic market. Also, many consumers still continue to use sunflower, soybean and other edible oils.