COIMBATORE: In a crucial financial relief to traders and growers, coconut exports from Pollachi, Tamil Nadu’s largest coconut-producing hub, are rebounding as geopolitical tensions in West Asia ease and fresh enquiries begin to emerge from Gulf countries.
The return of export orders has raised hopes of a revival in overseas shipments. However, exporters caution that freight charges, which soared during the conflict, remain significantly above normal levels and continue to affect trade.
"With the West Asia conflict ending, we have started receiving enquiries for coconuts and copra from Gulf countries. Nearly 80 per cent of Pollachi's coconut exports are destined for Gulf nations. Exports had virtually come to a halt during the conflict," noted M Veeramani, a coconut trader from Pollachi.
Exporters said the disruption dealt a severe blow to the trade, with shipping costs escalating sharply during the conflict, and consignments remained stranded as demand weakened. "Several exporters suffered heavy losses as shipments got delayed and coconuts rotted after demand from Gulf countries declined following the outbreak of the conflict. Now, freight charges have started coming down, but they are still far from normal," Veeramani said.
The exporters expect shipment volumes to gradually return to pre-conflict levels in the coming weeks. PK Padmanaban, joint secretary of the Tamil Nadu Coconut Producers Companies Consortium, said exports through Kochi port had remained suspended for nearly three months. "Export enquiries have resumed only over the past week. We expect the market to stabilise within a month, following which coconut prices may also improve," he said.
According to Padmanaban, exporters from the Pollachi region alone used to dispatch up to eight containers of coconuts, each weighing around 30 tonnes, to Gulf countries every day before the disruption.
"Freight charges had increased by nearly 40 per cent during the conflict. Although they have declined marginally, they are yet to return to normal levels. The excess supply in the domestic market due to the suspension of exports led to a fall in coconut prices over the past three months. At the same time, production also remained high," he said.
Pollachi-based exporter M Anandaraj said the export market was only beginning to regain momentum. "It is only in the last 10 days that we have started receiving enquiries from buyers in Dubai, Saudi Arabia and Oman. We are hopeful that business will gradually pick up," he said.
The prolonged lull in exports has weighed heavily on prices. The wholesale price of coconut has fallen to around Rs 40,000 per tonne from about Rs 65,000 per tonne during the corresponding period last year.
Farmers say the decline would have been steeper if not for an acute shortage of labour. "Prices could have fallen even further but for the prevailing labour shortage. Migrant workers from West Bengal and Assam, who returned to their native places during the recent elections, are yet to come back. The shortage has affected harvesting and de-husking operations," said Veeramani, a coconut trader.
It is only in the last 10 days that we have started receiving enquiries from buyers in Dubai, Saudi Arabia and Oman. We are hopeful that business will gradually pick upM Anandaraj, Pollachi-based exporter
Farmers attribute the price decline not only to the disruption in exports but also to a bumper harvest. Growers expect the higher output to continue for another two months, after which production is likely to taper off with the end of the harvesting season.
However, they warn that next year's crop could be adversely affected by a weak monsoon and emerging drought-like conditions, which may reduce production and push up prices. "The current bumper harvest is largely because of the good rainfall received last year," farmers said.
Despite the bumper yield, water availability has emerged as the immediate concern. With rainfall remaining below normal this year, several farmers have already begun depending on tanker water to irrigate their coconut groves and help the trees withstand the dry spell.
80% of coconuts from Pollachi exported to Gulf
Exports disrupted for three months
Freight costs up by 40 per cent
Coconut cost dropped from Rs 65k/tonne to Rs 40k