TN coconut farmers say companies and traders have formed syndicate to drive down prices

COIMBATORE: Coconut farmers, who benefited from a sharp rise in prices over the past few months, have now run into a setback. They allege that a group of major companies involved in the coconut oil trade, along with local traders, have formed a syndicate to deliberately drive down procurement prices.K Jothimani, a coconut farmer at Subbegoundanputhur in Anamalai taluk, said the farm-gate price of coconuts, which was around Rs 70 per kg on Aug 10, dropped to Rs 58 within a few days and increased to Rs 66 on Sunday. “It is like gambling. In villages, small farmers with three to 10 acres sell their coconuts to local traders, who in turn supply them to bigger traders. We were forced to sell at lower prices because big traders in Kangeyam, backed by corporate companies, dictate the market,” he alleged.He added that corporates use coconuts for multiple purposes, including soap manufacturing, edible oil production and domestic consumption. “In Kashmir, coconuts are also used in dried form, like chips,” he said.With the Onam festival approaching in Kerala, the demand for coconut oil has surged. "The Kerala govt is planning to distribute two kilograms of coconut oil to each household under its ration scheme, requiring nearly two crore litres of oil in bulk. Since Kerala does not have sufficient copra to meet this demand, traders are procuring coconuts from Tamil Nadu at lower prices. By suddenly taking control of the market, they are pushing down prices here,” said a farmer in Pollachi.