Tender coconut exports from Pollachi in Tamil Nadu’s Coimbatore district have faced significant disruptions in the past two months. The halt in shipments to key international markets is a result of rising freight charges and prolonged transit delays linked to the Iran–Israel conflict. This situation has made it economically unfeasible for traders to continue exports.
The surge in shipping costs, combined with uncertainties regarding delivery schedules, has forced traders to cancel several consignments despite ongoing demand from foreign buyers. The global shipping disruptions, including congestion and rerouting in major maritime routes, have worsened the crisis. Transit through the Suez Canal has slowed down considerably, while alternative routes have extended delivery times to nearly a month for European destinations.
Exports to Gulf countries, such as Saudi Arabia and Kuwait, have also been impacted. Vessels are being redirected around the Strait of Hormuz, doubling transit durations and making it challenging to sustain exports of perishable goods like tender coconuts. Consequently, shipments to major markets in Europe, East Asia, and North America have been suspended, affecting the supply chain significantly.
The extended transit times have posed challenges in maintaining the quality of tender coconuts due to their highly perishable nature with a shelf life of about a week. Domestically, the coconut sector is facing additional strains from labor shortages, partly due to some workers being involved in election-related activities. This has disrupted various operations from harvesting to packaging across farms and export units.
Rising input costs, particularly the increase in fertilizer prices post-conflict, have further burdened the sector. Moreover, pest attacks like whitefly and root wilt disease, coupled with a prolonged dry spell, have led to a decline in coconut yield by up to 25%. Pollachi, known for its high-quality tender coconuts with high water content, accounts for a significant portion of coconut cultivation in Coimbatore district.
Despite the export standstill, strong domestic demand has provided some relief to growers. Farm-gate prices are hovering around Rs 49 per coconut, while retail prices remain above Rs 60 in various markets, offering support to the industry amidst the challenges.
