The copra industry in Kerala, the land of coconut trees, is facing an acute crisis with farmers turning to other crops due to declining prices.
From as high as Rs 6,000 per quintal two years ago, copra prices have fallen to Rs 3,150 now, forcing farmers to give up coconut cultivation in Kozhikode, Alleppey and Cherthala, the major coconut belts.
“The state Government’s failure to implement its decision to withdraw four per cent VAT, increasing cost of manure and several other factors have contributed to the present pathetic situation,” said P P Abdurrehman, Vice-President of Malabar Produce Merchants’ Association.
“Tamil Nadu, where there is no VAT on the product, is giving better subsidies to its growers like free power and water. Also, the price of manure is comparatively low in that state enabling it to take over the prime spot in exporting copra to the northern states now,” he said.
Exports from Kozhikode, which was once known as copra hub of the country, have come down from 150 bags (each bag comprising 50 kgs) a day to a mere 20 to 25 bags now, clearly indicating the sharp downfall, he said.