Copra shortage grips Kerala; Kerafed explores import option for first time

Facing a severe shortage of copra, the Kerala government-backed Kerafed is considering the possibility of importing copra for the first time in history. The move comes as the availability of copra in the open market plummeted and prices have doubled, prompting an urgent response.

Raw coconut procurement underway

In addition to exploring imports—which would require the approval of both central and state governments—Kerafed has begun direct procurement of raw coconuts from farmers to address the shortage.

Kerafed is currently paying Re 1 more per kg than the market rate for raw coconuts. It may be noted that, the organisation only has enough copra stock to last 15 more days, prompting preparations for alternative sourcing once that supply is exhausted.

District-wise procurement strategy

In Kasaragod and Kannur, raw coconuts will be directly procured from farmers and processed.

In Palakkad, Malappuram, and Kozhikode, procurement will be carried out in collaboration with ESAF Bank.

In Thrissur, the process will be channelled through cooperative societies.

Rising oil prices

At present, coconut oil is selling at Rs 419 per kg, a record high. This is the first time prices have surged to this extent. The shortage of coconuts in South India has been cited as the primary reason for the increase in copra and oil prices.

Kerafed Managing Director Saju K Surendran said the organisation is taking all necessary steps to prevent further escalation in coconut oil prices.