Pakistan willing to shell out twice the price for Indian coconuts

KOCHI: Pakistan is becoming a major importer of dry coconuts, or copra, from India with flow from Sri Lanka dwindling. Despite prices doubling this year, purchase of copra by the neighbouring country is robust, say traders and exporters of coconut oil and copra.
From 2011 to 2013, copra exports to Pakistan from India have doubled to nearly 21,000 tonne. Though the statistics for 2014 aren't available yet, there is only a marginal difference this year, according to Coconut Development Board sources.

The UAE is the largest buyer of Indian copra, with shipment of about 30,600 tonne in 2013. But the growth shown over the previous year at 55% was much slower compared with Pakistan. If the prices had not increased as much as they did, the growth could have been much higher. Kangayam in Tamil Nadu is currently the hub of copra trade.

"The quality of our copra is better.Around 25 containers of copra from this region goes to Pakistan and the UAE from Mumbai port daily," said Mayilsamy, proprietor of Shrika Oil Industries in Kangayam.

A slump in coconut production in Tamil Nadu, along with the continuing demand from overseas, has led to copra prices doubling from last Rs 120-130 a kg per year.

The political problems in Pakistan so far haven't affected exports, and a small quantity of copra is even smuggled to Pakistan. Pakistan purchases copra round the year for consumption as edible dry fruit. "When prices shot up to Rs 135 per kg, there was a slight slowdown of exports," says NSN Dhanapal, director of NSN group of companies.

Sri Lanka has been the main supplier of copra to Pakistan. But a production shortage and demand from elsewhere have led the island nation to go slow on exports to Pakistan.

"Sri Lanka sells lot of fresh coconuts to the desiccated coconut industry in European countries. They get better rate for the coconuts," said Durgaprasad Gupta, founder of Kozhikode-based Raj Exports. But if prices continue to remain high, India's exports could suffer slightly as Sri Lanka is supplying at a lower rate, he said.

The industry is looking ahead to the next harvest season and hopes availability will be better.

Coconut production in Tamil Nadu, which along with Kerala is the largest coconut producer in the country, will depend on rains during the northeast monsoon.