With the first phase of copra collection complete, the National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) is set to begin copra sales. Copra from Tamil Nadu and Kerala, as well as ball copra from Karnataka, will be sold over the next three months, starting with an auction in Tamil Nadu on July 17.
Tamil Nadu will see the auction of 39,472 tonnes of copra at once. There is concern among farmers that the large influx of copra and ball copra into the market could cause coconut prices to fall again. In Kerala, only 102 tonnes of copra are available for sale, so its market impact will be minimal. However, the auctions in Tamil Nadu and Karnataka may influence prices in Kerala. While a few farmers benefit from storage, the overall decrease in prices due to the sale of stored copra negatively affects many farmers.
Historically, NAFED has stored copra for six consecutive months before selling it. Often, not all of the stored copra is sold within the year, leading to accumulation. To address this, NAFED has adopted a new strategy in 2024: copra will be stored for the first three months, sold over the next three months, and then stored again for the subsequent three months.
This year, Tamil Nadu has stocked 28,216 tonnes of copra, less than in previous years. However, 30,000 tonnes of copra stored in 2023 remain unsold, which will be auctioned in the first phase. There is concern that NAFED might have to sell older copra at reduced market prices.
In Karnataka, 68,107 tonnes of ball copra were procured this year, and the sale is expected to significantly impact prices, which have been consistently Rs 3,000 below the support price for some time.
Farmers have been voicing their concerns for two years, stating that coconut prices will not rise as long as subsidized copra is sold below market rates, as seen in 2022 and 2023. They are urging NAFED to process copra into coconut oil. NAFED already sells rice and wheat under the ‘Bharat’ brand, and there is demand to introduce coconut oil under the same brand. Copra and coconut oil from India are exported, and NAFED could use high-quality copra for this purpose.
