NAFED to begin Copra sales amid farmers' concerns

Vadakara: With the completion of the first phase of copra collection this year, National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) Is now all set for copra sales. Copra procured from Tamil Nadu and Kerala, and ball copra from Karnataka, is to be sold in three months. The auction will start on July 17 in Tamil Nadu.

39,472 tonnes of copra will be auctioned in Tamil Nadu at once. With large quantities of copra and ball copra reaching the market, there is concern that coconut prices will fall again. Only 102 tonnes of copra are available for sale in Kerala. Due to its small volume, its sale will not considerably affect the price, but auctions in Tamil Nadu and Karnataka may influence the Kerala market. Only a small number of farmers benefit from storage. However, the decrease in prices due to the sale of stored copra affects a large number of farmers.

Until last year, NAFED has been stocking copra for six consecutive months, which is then sold. Often, not all of the stocked copra can be sold within the year, leading to an accumulation. To address this, starting in 2024, a new approach has been implemented: copra will be stored for the first three months, sold in the next three months, and then stored again for the subsequent three months.

28,216 tonnes in Tamil Nadu, 68,107 tonnes in Karnataka

Compared to previous years, the quantity of copra stocked in Tamil Nadu is less—28,216 tonnes. However, 30,000 tonnes of copra stored in 2023 remain unsold, which Tamil Nadu will auction in the first phase. A concern is that NAFED may be compelled to sell older copra at reduced market prices.

In Karnataka, 68,107 tonnes of ball copra were procured this year. When sold, the prices are going to be affected badly. The current price has been consistently Rs 3000 below the support price for some time.

Need for policy change

For two years, farmers have been asserting that coconut prices will not rise as long as copra, acquired from farmers at subsidised prices, is sold below market rates. This has been evident in the years 2022 and 2023. 

Farmers are urging NAFED to process copra into coconut oil. NAFED already sells rice and wheat under the brand 'Bharat' in the market, and there is a demand to introduce coconut oil under the same brand. Copra and coconut oil from India are exported, and NAFED could use quality copra for this purpose.