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Coconut prices in Tamil Nadu have recently risen by nearly 15% above the procurement rates offered by regulated markets under the Price Support Scheme. Increased demand for coconuts in local markets has resulted in reduced copra conversion, driving up its prices. Tamil Nadu, with over 4.44 lakh hectares of coconut cultivation, produces 51,282 lakh nuts annually, achieving a productivity rate of 11,526 nuts per hectare.

Farmers report that selling coconuts directly yields higher returns, causing a decline in copra conversion. This market shift is expected to affect procurement through regulated markets, which, until now, remained stable even during the peak arrival season from January to October. Despite fluctuations in market demand, the year-round harvesting schedule had previously ensured steady procurement.

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However, a senior official from the Agricultural Marketing and Agri-Business Department has indicated that copra prices are likely to remain high in the local market over the next three months, potentially disrupting procurement. The Price Support Scheme, which sets annual Minimum Support Prices based on recommendations from the Commission for Agricultural Costs and Prices, aims to stabilize prices for coconut growers. Current market conditions, however, present challenges for regulated procurement processes.