Vadakara: A large stockpile of copra procured by NAFED (National Agricultural Cooperative Marketing Federation) under the central government’s Minimum Support Price Scheme in Tamil Nadu poses a threat to the possibility of a price hike in the copra market. Although NAFED began the process of auctioning and selling copra in Tamil Nadu in December itself, the first phase has not been completed even after three months. 

Out of the total copra stocked in 2022, 3337 tonnes of copra remains unsold. Of the 79,000 tonnes of copra stocked in 2023, 13,870 tonnes of copra were left for sale in the first phase. 1122 tonnes of copra were kept for sale in Kerala, and only 100 tonnes remain unsold. 

The price of copra in Kerala ranges between Rs 8260- 8449 per quintal. In 2022, the price in Tamil Nadu was Rs 7500 while in 2023 it was Rs 8200. This is around Rs 500 to 1000 less than the current market price (quintal). NAFED selling copra at low prices is one of the main reasons why the market price does not increase. Similarly, oil mills have the bulk availability of copra.

The procurement for 2024 as per the revised minimum support price will commence shortly. Once this starts, NAFED will stop auctioning the copra stocked last year. It may be noted that the same happened in the previous year. NAFED has been currently selling 15,000 tonnes of copra that were procured in 2022 as the organisation was not able to sell off it in 2023. There is concern that the possibility of a price hike will not come to fruition if the trend continues. 

As the copra-coconut oil markets in Kerala are inextricably linked with Tamil Nadu, the stockpiling of NAFED copra will affect the market in Kerala as well. 

Earlier, when the price of copra was up to Rs 9500 per quintal in Tamil Nadu, NAFED sold it in a price range of Rs 8260 to Rs 8449. Currently, the price of copra is Rs 8400. However, NAFED sells it at a range between Rs 8000 to 8200.

The prices of coconut and copra have increased, including in Kerala, after the storage for minimum support price was completed. The prices touched a two-year high of Rs 10,250 but fell soon after NAFED began its sale in January onwards.