Mar 17, 2014
Agricultural woes in state and Kerala bring down supply to a third; cascading effect increases prices of tender coconut too
Ahead of a scorching summer and the marriage season, Bangalore is witnessing an unusual hike in the price of coconuts. The rise in coconut prices has had a cascading effect on prices of tender coconuts as well. Farmers, lured by enticing prices for the ripe nuts, are refusing to pluck them tender.
So don't be surprised if you don't get a coconut as a return gift at the next wedding you attend, or the waiter at your regular restaurant is found dragging his feet when you ask for that extra cup of chutney.
Because of their varied uses, coconuts are always in demand. For the last few years, coconut prices have remained stable despite the steep increase in the prices of vegetables. Now the tide has turned, and the reasons cited for the fall in production, and the consequent dip in supply, range from depleting underground water table to widespread diseases affecting the palm.
Coconut prices have shot up from Rs 10-12 to Rs 20-25 in the last few days. Venkatesh V, a coconut merchant from Yeshwantpur wholesale market, told Bangalore Mirror: "Coconut growing areas have been reeling under severe drought for the last four years. Adding to the problem, widespread diseases have also brought down palms in various coconut growing districts of the state. Prices have gone up in neighbouring Kerala too, and getting coconut from outside will only add to the surging prices."
On an average, the Yeshwantpur APMC yard used to receive 10-15 truckloads of ripened coconuts every day, ready to be used for cooking and other religious purposes. "The Bangalore market (domestic users and hotels and restaurants) requires about 3 lakh nuts per day. Each truckload contains about 25,000-30,000 husked coconuts, while a Canter-type vehicle can load 10,000-12,000 husked coconuts. Much of the coconuts that we receive are supplied to darshinis and retailers in various areas of the city. For the last few weeks, the inflow is steadily on the decrease. Every day we get about 4-5 truckloads currently," explained Manjunath V, another coconut wholesaler at the APMC yard. Even though the wholesale price of a good quality husked coconut stood at Rs 18 at Yeshwantpur, it would be sold at Rs 25 by retailers in their stores.
Much of the city's coconut requirement is met by growers in the state. But coconut from Kerala, Tamil Nadu, and Andhra Pradesh are also brought to the city for auction, and transported to other North Indian cities. The widening gap between supply and demand has triggered a price war. Keeping in mind the rising prices and cost of operations, even hoteliers are cutting down on coconut consumption. "A medium-sized darshini hotel, which used to buy 1,000 coconuts a day, has cut down to 400-500 coconuts. The price hike is likely to continue till the end of the monsoon as there is no steady supply," explained Shankarappa B, a third trader at the APMC yard.