India Copra Prices Show Opposing Trend

Copra prices are witnessing a divergent trend in the key producing states of southern India, The Hindu BusinessLine reported from Kochi on April 28.  Prices of milling copra have started softening ahead of the start of the new coconut crop season in Kerala and Tamil Nadu, while the edible ball copra are ruling firm in neighboring Karnataka.  According to the Cochin Oil Merchants Association, prices of milling copra have continuously dropped as the commencement of the crop season in Kerala has ensured good availability of raw coconuts in the market.  Moreover, demand in the coconut oil market is sluggish because of higher prices, forcing consumers to shift to other cheaper alternatives for the time being.

On the other hand, in Karnataka’s Tiptur market, the modal price (rates at which most trades take place) of ball copra, has risen, giving some respite to growers. Trade sources attribute the current price trend to supply issues of ball copra, which is mainly produced in districts of Tumkur, Hassan, and Chitradurga districts of Karnataka. “Arrivals have thinned down considerably over the past year as production has taken a hit due to mite disease in coconut plantations,” said Srikant Kelahatti of RaithaBandhu, commission agent in Tiptur APMC.

 Unlike the milling copra, which is produced by cutting open the coconut and drying the kernel either in direct sunlight or using the driers in a couple of days, the production process of ball copra is lengthy and costlier one. It takes about a minimum of 9-11 months to produce ball copra. Farmers dry the mature coconuts for at least 11 months during which process the water in the nut gets dried naturally, lending unique sweet taste to copra. The dried nut is then de-husked and de-shelled to obtain copra, which is in ball shape. Hence, it is called ball copra. 

It is estimated that about 39 per cent of the country’s total coconut production of around 15 million tons is converted into copra, of which 23 per cent is edible copra and remaining 77 per cent is milling variety to produce oil for edible, cosmetics and oleochemicals. While milling copra production is concentrated in Kerala and Tamil Nadu with 52 per cent and 39 per cent share, the edible copra is largely produced in Karnataka accounting for 61.5 per cent of the output.