The
copra industry in Kerala, the land of coconut trees, is
facing an acute crisis with farmers turning to other
crops due to declining prices.
From as high as Rs 6,000 per quintal two years ago,
copra prices have fallen to Rs 3,150 now, forcing
farmers to give up coconut cultivation in Kozhikode,
Alleppey and Cherthala, the major coconut belts.
"The
state Government's failure to implement its decision to
withdraw four per cent VAT, increasing cost of manure
and several other factors have contributed to the
present pathetic situation," said P P Abdurrehman,
Vice-President of Malabar Produce Merchants'
Association.
"Tamil Nadu, where there is no VAT on the product,
is giving better subsidies to its growers like free
power and water. Also, the price of manure is
comparatively low in that state enabling it to take over
the prime spot in exporting copra to the northern states
now," he said.
"Exports from Kozhikode, which was once known as
copra hub of the country, have come down from 150 bags
(each bag comprising 50 kgs) a day to a mere 20 to 25
bags now, clearly indicating the sharp downfall,"
he said.