Vadakara: The procurement of copra based on minimum support price in Kerala appears to be faltering due to an unscientific approach.

The nod for procurement was obtained two months ago, but the process is marred by two major issues—payments made in two instalments and the state share being delayed for months.

Since copra production in the state is low, raw coconuts are collected and then converted into copra before being handed over to NAFED. Farmers receive Rs 84 per kilogram for raw coconuts. Out of this, the central government's share of Rs 30.13 is received within two to three weeks of procurement. However, there is uncertainty about when the state share of Rs 3.87 will be available. The state share for the raw coconuts collected in the last season has still not been paid.

In the open market, farmers could get Rs 28 to Rs 80 for 1 kilogram of raw coconuts. While in procurement through the government channel, it would take two to three weeks for the Centre’s share to be processed. For the remaining share, it could take months. Even if the price is lower, immediate payment (open market) is preferable to delayed compensation (government channel).

Since the beginning of this year's procurement, the price of raw coconuts has been above Rs 30 per kilogram. Currently, the price has dropped to Rs 30 per kilogram. There is a Rs 6 difference per kilogram compared to the procurement price. Despite this, only 116 farmers have registered for raw coconut procurement in the state. Of those, only 24 farmers have supplied coconuts.

The procurement has started in Malappuram, which has exposed another major issue. The unchanged price of raw coconuts compared to last year is discouraging farmers. In 2023, the support price for copra was Rs 10,860 per quintal. Farmers who supplied raw coconuts as part of the copra procurement received Rs 34 per kilogram. This time, even though the support price for copra has been raised to Rs 11,160 per quintal, farmers in Kerala still receive only Rs 34 per kilogram for raw coconuts. The benefit of the increased copra support price is nullified by the failure to proportionally increase the price of raw coconuts.