Karnataka: Dry Coconut Prices Hit Record ₹32,218 Per Quintal, Prices Expected to Increase Further

Dry coconut prices in Karnataka hit a record ₹32,218 per quintal at Tiptur APMC in Tumakuru, bringing relief to farmers. Low supply, falling yields, and strong demand have driven the surge, with prices expected to rise further in the coming months.

After years of struggling with low returns and uncertainty, coconut growers in Tumakuru district finally have reason to celebrate. At Monday’s auction in Tiptur’s APMC market, dry coconut (copra) prices surged to an all-time high of ₹32,218 per quintal. This remarkable rise marks a significant turnaround for farmers who had nearly lost hope after prolonged periods of poor pricing.

Steady Recovery Since 2024

This sharp rise in prices has not occurred overnight. Copra rates have been steadily recovering since mid-2024. As recently as last Thursday, prices had climbed to ₹30,830 per quintal, providing some respite to growers. However, Monday’s auction broke all previous records, ushering in a new chapter in the history of copra prices and sparking widespread celebrations among farmers and traders alike.

The Fame of Tiptur’s Sweet Copra

Tiptur is renowned for its distinctive sweet copra, which enjoys strong demand not only across India but also in international markets. For years, farmers noted that prices rarely crossed the ₹20,000 mark. Around seven to eight years ago, prices briefly approached ₹18,000 before declining sharply. As recently as 2023, copra prices remained between ₹8,000 and ₹10,000 per quintal, leaving farmers disillusioned and financially strained.

Farmers Shifting Crops Amid Low Prices

The prolonged period of low prices forced many farmers to reconsider coconut cultivation altogether. Several began shifting to alternative cash crops such as areca nut, banana, and pomegranate. However, a notable decline in coconut yield over the past year, combined with rising demand for tender and fresh coconuts, altered market dynamics. Farmers increasingly opted to sell coconuts directly rather than processing them into copra, contributing to a shortage in the copra market.

Demand Supply Imbalance Driving Prices

Currently, copra stocks with farmers are limited due to multiple factors, including reduced yield and changing selling patterns. Market arrivals remain low, while demand continues to rise. The festive season in North India, spanning from Shravan to Diwali, traditionally fuels higher demand for copra. While seasonal price increases are common, this year’s surge is unusually steep, indicating a stronger underlying market trend.

Impact Across Coconut Growing States

A similar situation is being observed in other major coconut producing states such as Tamil Nadu, Andhra Pradesh, and Kerala, where yields have also declined. In Karnataka, often referred to as Kalpataru Nadu, the land of coconuts, favourable prices for tender and fresh coconuts have encouraged farmers to prioritise direct sales over copra production, further tightening supply.

Long Term Factors Affecting Production

Over the past six to seven years, erratic and insufficient rainfall, along with the spread of diseases, has significantly impacted coconut plantations. Many trees have been damaged or lost, leading to a substantial decline in overall productivity. These long term challenges have compounded the current supply shortage.

Outlook Prices Likely to Rise Further

Considering the combination of reduced supply, strong domestic demand, and shifting farmer preferences, market experts believe that prices of tender coconut, fresh coconut, and copra are likely to increase further in the coming months. For now, the record breaking prices have brought much needed relief and optimism to coconut growers in the region.