COIMBATORE: Expected arrivals of coconut in March-June, coupled with duty-free import of palm oil, will keep the price of coconut in the downward trend during this period.

Also, the stable demand for nuts in the forthcoming months will not help in the price increase.

Hence, farmers are advised by the Domestic and Export Market Intelligence Cell (DEMIC) of the Tamil Nadu Agricultural University to sell the harvested nuts immediately without resorting to storage.

According to a release, even though only 35 per cent of the coconut produced in the country is used for extraction of oil, the entire coconut-based economic activities are dictated by the price of coconut oil.

The coconut oil price is directly influenced by import quantity of palm oil.

Avalpunthurai Regulated Market is one of the largest centres for copra in Tamil Nadu. Oil millers procure copra from this market.

Also, Pollachi coconut fetches premium price due to its quality and high oil content. Copra recovery from coconut is 17 per cent and oil recovery is 60 per cent to 65 per cent.

Tender coconut

Since the demand for tender coconut is on the increase in Coimbatore, Madurai, Tiruchi and Chennai, farmers prefer to plant short-term varieties that bear nuts within three years.

DEMIC predicts that the farm level price will rule at Rs. 4.25 to 4.80 a nut during March- June 2010.

Courtesy - Hindu