Coconut exports from Pollachi, Tamil Nadu, the largest coconut-producing region in the state, are on the path to recovery. The easing of geopolitical tensions in West Asia and the resurgence of demand from Gulf countries are bringing relief to growers and exporters after a period of disruption. Fresh export inquiries from key Gulf markets are reviving overseas trade, which had nearly halted during the West Asia conflict.
Export activities have resumed, but challenges persist as freight charges remain high, although they have slightly decreased from peak levels seen during the conflict. The rise in shipping costs, along with cargo movement delays, had caused significant losses for exporters, with some shipments deteriorating before reaching their destinations.
Stakeholders in the industry anticipate that exports will gradually increase to pre-conflict levels in the upcoming weeks as inquiries rise. Before the disruption, exporters from Pollachi used to ship numerous containers of coconuts to Gulf countries daily through Kochi port. However, export operations through the port had been largely suspended for almost three months.
The prolonged export interruption led to an oversupply in the domestic market, resulting in a sharp decline in coconut prices. Wholesale prices have fallen to around Rs 40,000 per tonne, a notable drop from nearly Rs 65,000 per tonne in the same period last year. Despite abundant production, labor shortages have prevented prices from falling further, affecting harvesting and de-husking operations.
Growers expect the higher production to continue for another two months before the harvesting season slows down. Concerns are arising about next year’s crop due to below-normal rainfall and developing drought-like conditions, which may lead to reduced production and potential price increases. Water scarcity is an immediate challenge, with inadequate rainfall affecting groundwater availability, forcing many farmers to rely on tanker water for irrigation.
