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ICJ August 2012 THEME INNOVATIVE MARKETING STRATEGIES INSIDE A concerted team work needed to tide over the current crisis in coconut sector... .... 2 The way of presentation is what ultimately matters in the market ............................. 4 Deepthi Nair. S. Natural drinks in the natural way ......... 10 Vijayakumar Hallikery Thengu Mane- a treat to the palette ..... 12 Business Opportunities ............................................... 33 Vijayakumar Hallikeri &G.M. Siddarameswara Swamy News ............................................................................. 34 Tranquebar Whiskey from Coconut Milk .......................................... 14 Project Approval Committee cleared 18 projects Sasikumar C International coir tech expo held at Kochi ILA-Coconut Soda .................................. 15 Hospitality World Mridula K Prizes of Literary competition distributed Virgin coconut oil is not a medicine, .... 16 but a functional food Monthly operations in coconut gardens - August ...... 37 Prospects of market development for non- Market Review - June 2012 ......................................... 39 traditional value added coconut products in & around National Capital ..................... 18 Kumaravel S, G.R. Singh, Ravi Prakash & Jayakumar S Unlocking the potential of Nature’s ...... 22 Super Market- the Coconut M.A. Salam, Alvira D’Souza & Mridula K Copra Procurement Under Price Support Scheme .................................................. 26 Deepthi Nair S. Import of vegetable oils an outlook ...... 29 P.O. Baby Vermicompost production, from ash to cash ........................................................ 30 G.K.Girijesh, T.S. Vageesh, R. Nagaraj, A.S.Kumaraswamy, M.Dinesh Kumar Chairman’s Page A concerted team work needed to tide over the current crisis in coconut sector Dear Coconut Farmers, almost doubled during this year. The recent ban on export of coconut oil adds fuel to fire. Coconut farmers are reeling under a severe price fall in coconut, copra and coconut oil. PSS operations The country is having restriction on the export of by NAFED are going on. But unlike the previous years, all edible oils and coconut oil is one among them. The the PSS operations could not make much positive impact ban on export of coconut oil, which is used as edible on the price trend. No doubt, but for PSS operation oil only in Kerala seems to be little irrational. price fall would have been more severe. In India, in Unrestricted export of coconut oil is allowed only the southern states which are the major producers of through Kochi port. The restricted export of coconut coconut, the price of coconut is directly linked with oil permitted earlier through other EDI ports is banned the price of copra and coconut oil. Only a fair and with effect from 1st August 2012. If the export of reasonable price for coconut oil can, in turn, assure a coconut oil in bulk packing is allowed atleast through reasonable price for coconut. In order to identify all the South Indian Ports, we could have garnered the solutions for the price fall we have to analyse the sizeable market for coconut oil in the Middle East reasons for price fall. After understanding major countries. At present this market opportunity may go factors contributing to the price fall, we have to initiate to Sri Lanka and Philippines. measures for arresting this trend. Urgent policy The huge ethnic population of South Indian people decisions and Government interventions on a war in the Middle East countries offers great scope for the footing is necessary to help the Indian coconut industry penetration of Indian coconut oil in their markets. It is to tide over the crisis. estimated that around 50000 MT of coconut oil is The international price of coconut oil is an important annually used in Middle East markets. The ban of export factor in deciding price coconut of coconut oil in India. from India opens up avenue for Sri Lanka and Since domestic as well as international prices of Philippines. This may again affect the export of Indian coconut oil are now almost at par, export of coconut coconut products. This calls for a situation wherein oil is possible. Other factors like the prices of other the farmer collectives and representatives of people edible oils, its availability, shortage, import of various must intervene to convince the government to lift the edible oils to India, export of coconut oil from India ban on export of coconut oil. and PSS operations based on MSP are having their Acceleration of MSP procurement by State level share in deciding market prices of coconut oil. procurement agencies and strict monitoring of the Normally lesser rain fall might have spiked the price procurement process by state governments are other of agricultural crops; especially oil seeds. But coconut important factors that can help farmers. Procurement oil is the only edible oil in India, still reeling under very must be based on definite targets in close association low price. with farmer collectives. Transparency must be ensured We have been facing shortage of edible oil during in the procurement operations with procedures made these years. The anticipated decrease in the production more logical and simple by state level agencies. There of edible oils due to delayed monsoon and the shortage are complaints that some state level agencies are even of rain may aggravate the situation. Keeping this in enforcing conditions not stipulated by NAFED. mind, edible oil importers already hiked their stock of Considering the severe fall in the prices of copra, edible oils. The country has already imported around State Governments must consider extending additional 12 lakh tones of RBD palm oil and 34 lakh tones of support to farmers. The State Government of crude palm oil (November 2011-June 2012). At present, Karnataka has already sanctioned an additional crude palm oil has zero import duty and refined palm incentive of Rs.700 per quintal of copra apart from oil has an import duty of 7.5%. Import of palm oil is the MSP of Rs.5350/- per quintal for ball copra offered Indian Coconut Journal 2 August 2012 Chairman’s Page by NAFED. This additional support has created very for establishing coconut processing units. CPS, their good impact in the ball copra market of Karnataka Federations and Producer Companies can take up such and the price has reached at par with the MSP. Board initiatives by availing the financial assistance of the has solicited the Governments of Tamil Nadu and Board. Along with Board, State Governments must Kerala to extend similar support in their states too. also undertake intensive promotional campaigns to Creation of additional infrastructure for copra increase the consumption and utilization of various making is another area that needs to be explored on a coconut products. war footing. Board is extending 50% financial Policy interventions both at the central and State assistance for installing modern copra dryers with a Government level are now vital for protecting the minimum capacity of 10,000 nuts per batch to coconut sector of our country. It is the responsibility Federations of CPSs. The State Governments may also of the concerned state governments to ensure that mobilize funds for creating modern dryers for copra these policy decisions are reaching the grass root level, making. Similarly local self government institutions through various programmes and projects. The through their plan funds for production sector may Government of India had declared the MSP for copra encourage farmer collectives like CPSs and and designated NAFED for the procurement Cooperative Societies to establish modern copra operations. But the responsibility lies on the state level dryers. A uniform rate of 50% subsidy for the copra designated agencies and they must ensure that the dryers may be thought of by all agencies. The procurement process is hassle free. Coconut Producers immediate need of the hour is a policy decision at the Societies have to take the lead in the supply of FAQ government level for this purpose. copra to procurement agencies. Thus the national level Commission for Agricultural Costs and Prices agency, state level procuring agencies and the farmer (CACP) has initiated action for deciding the Minimum collectives must work in tandem for making the national Support Price for copra for the next season. The policy of MSP functionally benefitting coconut farmers. committee is planning to visit Tamil Nadu and Kerala Effective teamwork is needed for this purpose and for collecting information from the farmers and the this is the right time to invigorate such teamwork. farmer collectives. Coconut farming community must Neera tapping is another area which needs to be make use of this opportunity for appraising the explored. All the major coconut growing countries are commission for fixing a fair and remunerative price effectively utilizing the potential of Neera both in their for their products. domestic as well as in international markets. It is high Tender coconut marketing is another avenue that time that in our country also, State Governments must needs to be exploited fully for arresting this price trend. take policy decision for issuing license for producing None of the coconut products other than copra and coconut neera to farmers’ collectives thereby enabling coconut oil are affected by this declining price trend. the coconut farmers to get steady revenue. Tapping Maximum tender coconut harvest must be made during of the inflorescence opens up still larger avenues for September-May
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