Copra prices in India have recently dipped amid delay in procurement; draught has further added to farmers’ stress

Disruptions in the copra procurement process, due to issues like the registration of non-legitimate farmers by traders and middlemen, have caused copra prices to decline. The secretary of the local Agricultural Produce Market Committee (APMC) has pointed out that the drop in copra prices this year was influenced by an oversupply and manipulation of prices by traders.

NAFED procurement had earlier caused an uptick in the copra prices

NAFED's procurement of copra from the open market had previously strengthened the price sentiments. The procurement, which had started before the national elections, boosted the market, further supported by festive demand during Ramzan and Vishu poojan (festive season in India). The government had set the minimum support prices at INR 116 for milling copra and INR 120 for ball copra, aiming to stabilize the market. Despite these efforts, demand in upcountry areas remained low as the harvest season began. Industry experts were cautiously optimistic but noted that prices might decrease as copra arrivals increased.

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Drought in Karnataka has increased the stress among farmers

Farmers in Karnataka have noticed a significant reduction in copra yield as the extreme heat affects the weight of the dried coconut kernels.  In regions like Tumakuru and Chitradurga, the lack of water has led to crop wilting (a condition where crops droop due to lack of water), further aggravating the problems caused by already falling copra prices.

In Tiptur, despite the availability of groundwater in some areas, farmers face financial challenges in accessing it, with many unable to afford the cost of drilling borewells. Those who have invested in borewells are facing losses as many wells have failed. The economic strain is acute for farmers who are spending significantly on water tanker services to sustain their crops, with drought relief funds provided by the state government proving insufficient. The persistent dry conditions pose a threat to the survival of plantations. There is a persistent concern that without timely rain, the situation may deteriorate further, risking the loss of more plantations.