CHAPTER-VI MARKETING OF AND RUBBER Coconut marketing in India and The depression in the International market and surplus stock of NR in the domestic market blocked the recovery of Indian NR market during 2000-01. Not withstanding a marginal improvement in the market during the last quarter, the prices continued to rule at low levels during 2001-02 also the annul average price of RSS4 grade rubber in Kottayam market was Rs. 3036 per 100 kg during 2000-01 and Rs. 3228 during 2001-02. In Kuala Lumpur market, the annual average price of the RSS 3 grade rubber, regarded by the tyre companies as uneqivalent to Indian RSS 4, was Rs. 2958 per 100 kg during 2000-01 and Rs. 2793 during 2001-02. When the price in the domestic market continued its downward movement, the government of India intervened in the domestic market by procuring rubber though the State Trading Corporation of India Ltd., (STC) during the period from August 1997 to April 2001. In the first phase of procurement from August 1997 to March 1998 STC procured 9,596 tonnes. In the second phase, it procured 19,831 tonnes during September 1998 to October 1999. The quantity procured from the market in the third phase of the procurement from March 2000 to October 2000 was 20,000 tonnes. STC was authorized to procure another 20,000 tones in October 2000. However, the total quanity procured during the fourth phase of operation was only 5,260 tonnes. These were sold to the advanced licensed holders at International prices. Another noteworthy development in the Indian NR market during 2001-02 was the notification of statutory minimum prices for NR by the Government of India at Rs. 3209 per 100 kg for RSS 4 and Rs. 3079 for RSS 5, with effect from 12th September 2001. The policy of the Government of India towards the import of NR has undergone changes with effect from April 2001; Quantitative Restrictions (QRS) an import of natural rubber has been removed. In the pre QRS regime, natural rubber was included in the Negative list as a restricted item of import. But in view of surplus availability of natural rubber, the government of India banned import of NR against

5,53 Advance License in February 1999 and the domestic rubber was made available to holders of Advance License at International price through the State Trading Corporation of India Ltd. However, with the fixation and notification of minimum price (which is based an import parity price, for trading in NRO procurement of NR through STC was stopped. Total import of NR during 2000-01 was 8970 tones against 20,213 tonnes during 1999-00. However, with removal of QRS an import of NR since April 2001, around 50.000 tonnes of NR was imported during 2001-02. Despite removal of registration an export since 1992, India could not make much headway due to a lost of factors like- the disparity between price of NR in the domestic market - which is higher than the international market, insignificant role in the export market of NR, inadequacy of reliable data and information about over seas markets of NR, inefficiency of existing marketing system and packing, ignorance of International rules and procedures, and insufficient infrastructure. The export of NR had increased from 5,989 tonnes during 199-00 to 13,356 tonnes during 2000-01. However, it declined during 2001-02 to 6,995 tonnes, prevalence of relatively low price in the international market made export of nNR legs attractive during 2001-02. In October 2001 the Government of India approved a scheme for export promotion of NR by providing financial incentives to exporters of NR for quality improvement, certification, packaging and transportation. The Government of India has approved a proposal from the Rubber Board for the export of 20,000 tonnes of NR by Kerala State Co-operative Rubber Marketing Federation with an outlay of Rs. 17.40 crores to be shared by the Government of India and . Pankajakshan in his sudy found that coconut, essentially a crop of the coastal states of India has considerable importance as an edible commodity used as an oil seed. The products obtained form coconut find popular use through out the country. Because of this phenomenon there are already efficient trade channels established for the commodity. Big business houses that deal in other vegetable oils also controls trade in which the main commercial product of value from coconut. Huge capital investment coupled with speculative nature of trade in coconut oil has remained a different for new traders to step in to the business. The total ban on the import of and oil from 1974 has helped others than traditional traders, especially mill owners in will owners in Kerala to take to coconut oil trade in a big way. The basic principle of price determination is one quintal of coconut oil is more or less equivalent to 1000 coconut all also the west cost. However, on rare occasions, this equation may not hold good. The price determination should protect the interests of growers, consumers of this industry and remunerative to the industry. The central Government announces the minimum support price (MSP) for both milling and the ball copra in every year on the recommended action of the commission for agricultural cost and prices (CACP) milling copra was included in the list of commodities in the year 1986 and edible ball copra in 1996. In the year 2000, the MSP announced is Rs. 3250 for milling copra per quintal for Fair average quality. (FAQ) copra has been prescribed for ball copra Rs. 3500/ per quintal and for Fair Average Quality. Rubber marketing in Kerala and Kannur Thomas P.M. (1999) in his study found that during the period 1980-81 and 1994 - 95, area under rose from 2.38 lakh hectares to 4.3 lakh hectares showing an aggregate increase of 86.13 percent and annual growth rate of 4.5 percent. During the same period Natural Rubber (NR) has recorded a more than three fold in its annual growth rate in production. 8.69 percentages is the highest among all major crops cultivated in the state. Further, his study also revealed that the Natural Rubber sector in Kannur district of Kerala state underlines the complementary relationship between the appropriate institutional frame work and a highly receptive farming community in realizing the potential benefits of research and development efforts. A paradigm shift in the policy initiatives is necessary so as to address the issues emerging from the economic reforms initiated since 1990s, the growing number of part time farmers and home stead farms of Natural Rubber in the state. The designing of appropriate policy inputs to ensure economic validity and agronomic substantiality poses serious policy changes in the era f market integration. The Rubber Board of Government of India (2004) in their study revealed that to organize the unorganized to lot and to promote among rubber growers a spirity of self help, in 1971, Kerala state rubber marketing federation Ltd was registered and established in Koch. There are over 200 village level service co-operatives and co­ operative banks are serving the rubber growers though marketing of rubber. The Board has evolved a scheme for revitalization of rich industrial co-operatives through share capital participation. The rubber plantation sector in Kerala is dominated by small and marginal holding which accounts for 88% of production. The co-operatives have not been able to bring in a vast majority of the rubber growers in the district under their fold. To take this issue the Board promoted the formation of grass root level organizations at the village level as Rubber producers’ societies (RPS) recently. During the period 2000-01 there are 2,100 RPS registered in Kerala They are directly engaging in collection of latex and community processing. In Kannur district of Kerala state, the government of Kerala state Rubber Co-operative Ltd, (RUBCO) in the dawn of unprecedented dip in the price of rubber after the removal of quantitative is producing various diversified products. In adequate working capital to procure rubber during leach season excessive political grant war to capture co-operative societies, a paradigm shift in import tariff duties after the removal of QRS. Inflicted heavy losses on financially weak co­ operative societies wide fluctuations in the price of rubber, the widely scattered marginal part time farmers and small farmers, acted as a hindrance to the economic viability and sustainability of Rubber marketing co-operative societies. In Kannur district, 60 percent of farmers are exchanging their product through organized traders, wholesale and middlemen and are subjected to exploitation and are deprived of fair market price for their products. Price determined in the Ottawa rubber market which is a reflection of market forces of both domestic and International Koula Lampur rubber market. Sweet toddy (Neera) In the coconut, the toddy is obtained from the inflorescence before the flowers fully develop. It is a health tonic to permanent women and child. Weather tapping from November to March and wet weather tapping from April to October Tapping is carried out through out the year on the same tree or different trees. Due to government prohibitions and stip opposition from national and Multinational Beverages companies, sweet toddy production sector is paralyses now. Large scale coconut estate owners are producing it for their own domestic use. It can be developed as a health soft drink with high potentialities of employment generation and income. Coconut by products in Ayurveda: - A Nut from south Sree Lanka was called Thenkai, Thengha. In Traditional indigeneous doctors vaidys used coconut, coconut oil, Tender , coconut water, as medicines. (Narikelagandam, Nari Kelamrithan, Narikela lavanam) 50 to 300 years old coconut oil is even now preserved in christianc church and “Illanms of Hindu Namboodiri community to cure various. Skin diseases, cancer dental disease to cure plague. In Raja vallabha dictionary tender coconut is described as Komala Nalikeram. It is widely uses for as medicine for Typhoid, Pneumonia, and Measles and for urinary complaints and to for drug addicts patients’ patients, R.B.C Urine etc. Copra is an effective medicine for B.complex deficiency, skoker’s cough, weer, hyper widely etc Marketing Agricultural marketing plays a crucial role in agricultural development which is a sinqua none or pre-requisite for development in other sectors and for the over all development of the economy. In a changing economic scenario, the marketing system comprises several agencies and institutions, each playing an import role in the system. Marketing channels of Indian Rubber industry The Indian Natural Rubber Industry has to compete in the International market consequent on the Market integration. NR is having a relatively lower bound rate when compared to other agricultural products, since rubber is not classified as an agricultural commodity. Increasing bound rate is also not possible / unless it is recategorized. There fore, the production available to the growers is only to the extent of bound rate minus the local taxed levied by the producing sates. This would mean that the higher prices prevalent in the market as in 1980s and even in 1990 s cannot be expected to prevail in the long run. It prices increase above that level import will take place and prices fall below a critical level, the farmers will be crucified. Absence of desired quality is not available in the domestic market and hence manufactures are forced to import. In the era of globalization and market integration, Indian manufacturing industry will have to complete with international market both in terms of price and quality while manufactures have to require ISO certification insistence in quality will be more stringent. Captive market quality of processing and packaging should be increased in so as to gain entry into the international market. Indian production and processing sector will have to reorient according to the international market standards in terms of forms of rubber being processed and also packing of Specialty of NR such as CV (Constant Viscosity) rubber. Oil extended NR and blends need to be produced with appropriate packaging. One of the cardinal loopholes of the Indian processing is that rubbed smoked sheet (RSS) dominate processing for of NR. 72 per cent of the rubber produced in the country is processed in this form. The most preferred NR in the international market is technically specified rubber (TSR) and the share of TSR in the international market is increasing and it accounts for 55 percent now. The TSR produced in India is not of comparable quality in the international market mainly because of the use of low quality field coagulam. Because of a ready market for RSS or latex concentrate, and to improve the quality of TSR though appropriate change in the raw material could not succeed, along with low capacity utilization of industries operating in the country, dominance of small and marginal growers poses handicap for an accelerated transformation of TSR. Limking grass root level RPS to the TSR producing factories will help establish the needed raw material supply chain to cater international market and domestic market which is becoming quality conscious. The high volume of TSR are imported rubber indicates that domestic consumers have also started preferring TSR quality. In major rubber producing countries like Malaysia, utilization capacity of the smallest factory is 40 tonnes per day, where as the biggest factory in India is 10 tonnes per day. The tenth year plan extended support for modernization of TSR factories for the promotion of TSR factories for the promotion of upsurge in TSR production. More than 90 per cent of the trade of rubber in the country is in the private sector and sometimes this monopoly creates problems in the market. Adjustment of domestic demand and supply through yearly piece meal imports impact the price in the market adversely, and this brings in immense hardships to the framing community. To tide over/combat this, it is imperative that an alternative marketing channel with the active participation and involvement of growers for which there is tremendous scope in rubber

<35a when compared to many other commercial crops. A beginning has already been made and companies jointly provided by the rubber board and the rubber producers societies have been formed aimed at empowering the small holdings sector and it can be labeled as an agri business consortium. Revamping of this consortium can handle 30 per cent of the rubber business through these organizations in collaboration with rubber marketing Co-operative. The Indian NR therefore has to gain entry into the international market for which regular exports are required. Export initiates of NR have been quite impressive and in 2003, more than 55000 tones NR valued at RS. 185 crores was exported to about 29 countries, which accounts for 8 per cent of India’s production in a global market with about 7 million tones, the Indian rubber growers should aim at both domestic and vast international market. Hence, economic prudence prescribes to produce NR availing of the resources and putting them to the optimum use so as to attain cost effectiveness with competitive health. Demand forecasters forecast that by 2020 the NR requirement in the world would be about 11.5 million tonnes. At the present phase world production constraints may not allow it to exceed 9 million tonnes, as the main players in the international market such as Indonesia, Malaysia and Thailand may not be able to sustain the current pace of production. With proper support and extension services Indian NR production is expected to increase as per capita consumption is one of the lowest to the time of 700 gram, against 14 kg in the developed countries. The anticipated production - consumption gulf in India by 2007-2008 is estimated to be 80000 tonnes this point to the tremendous scoped the NR industry holds for the future. Rubber Co-operatives Rubber small holder had long remained an unorganized lot. Considering the need to promote amongst them a spirit of sec self, the rubber board took vigorous stepts from early 1960 to encourage them to organize under dedicated co-operatives. The help provided included organizational assistance, share participations, working capital loans etc. there are 40 rubber marketing co-operatives with either districts or taluk as areas of operation, besides their daily routine work also under take rubber marketing, plantation crops, plantation inputs such as fertilizers, fungicides, for coagulation of latex, tapping aids etc., A number of these marketing co-operative also own and run large sized modem rubber processing factories. In 1971, an apex institution for the rubber marketing co-operatives, namely the Kerala State Co operative Rubber Marketing Federation Ltd., was registered and established in Kochi. Besides robber marketing co-operatives, the Government of Kerala and the Rubber Board are shareholders of the federation. The federation contacts activities like fertlising and mixing, rubber marketing, marketing of chemicals, fungicides and undertaking aerial spraying, processing solid robber etc., at all India bases. There are 200 villege level Service Co operatives and Co-operative Banks assist the robber marketing federation in this endeavor. It also conduct seminars, study classes etc, for the benefit of rubber growers. It also extends assistance for modernization and expansion of processing factories and units, rehabilitation of sick industrial co operatives, subsidizing installation of diesel generators in processing factories. Rubber Producers societies The rubber plantation sector in India is dominated by small holdings which accounts for 88 per cent of the production and area of robber in the country. For the effective transfer of technology and for empowerment of the sector, institutional building is necessary. The village level co-operative have not been able to bring in a vast majority of the robber growers into their fold permitting them to derive benefits. To tackle this issue the rubber board permitted to promote formation of grass root level organizations at the village level known as robber producers societies. RPS have been functioning effectively in implementing several of Board extension programmes such as setting up of demonstration plots, distribution of inputs, implementation of women development programmes, arranging of campus training, seminars and group meetings, identification of replantable areas besides directly engaging in collection of latex and community processing. At the end of 2000-2001, there are 2100 RPSs registered in Kerala and similar organizations are being formed in the non traditional regions also. Export Promotion Measures Rubber board is designed as an export promotion council (EPC) for export of natural robber. Besides issuing Registration cum membership certificate (RCMC) and

3,60 certificate of origin (CoO), the board provides assistance to promote export of natural rubber and related products. Even though the country had been exporting small quantities of natural rubber during the fast many years, India could not make a head way in the export front due to a host of reasons. (1) The International price of NR is generally lower than the domestic price. (2) Indian rubber industry did not have an export culture in the past (3) Quality and packaging of Indian NR are not up to International standards. (4) Lack of information/distorted information about average as NR market. (5) Inefficiency of the export marketing system To overcome these lacunas and to promote export, the rubber board is extending the following support to the exporters. (1) Financial assistance to the exporters for preparing rubber into exportable forms and presentation to minimize cost of production and to maintain parity and prices. This may be also help to minimize the price differences of rubber in the domestic and also to maintain parity in prices. (2) Technical and financial assistance for importing the quality of exportable rubber at International standards and specifications. (3) Assistance required for quality certification and packaging of exportable rubber as per International standards. (4) Assistance to build up humidity controlled warehouses and other infrastructure required to facilitate export of natural rubber. (5) Market information and market identification for different form of natural rubber in target countries. (6) Identification of NR imports in other countries and provide live information. (7) Sponsor trade delegations to participate in International Trade Fairs and Exhibitions related with rubber. (8) Provide International publicity in potential NR importing countries about Indias capability for supplying quality rubber at competitive rates on a regular basis. (9) Create awareness among potential exporters about export procedures, formalities and in and out knowledge on latest developments or changes in export/import policy matters. (10)Complete Research and Development support to NR processors to make processed rubber acceptable in the International market. The Board has already taken measures to establish rubber based industrial parks exclusively to promote organized marketing and export of rubber products from India. Organising trade delegations, Buyer-seller meets, employing international media, exporters, catalogues, internet facilities etc., are the other priority areas for conducting export promotion measures. Government intervention The Government of India adopted many measures to support the domestic rubber growers. NR was put on the negative list of imports ensuring protection to the rubber growers. Import of NR against advance license was banned on 1997 and in 1997 August the STC (State Trading Corporation) was directed to procure rubber at market price to supply the same to advance license holders at international prices. A comprehensive scheme was put in place I 1991 to promote export of NR and minimum prices were notified for the RSS4 and RSS5 grades. NR was however removed from the negative list of import from 1st April 2001 in conformity with the WTO regulations. Following Mumbai High Court Judgment, NR can now be imported duty free against Advance License. The removal of QRS on import of NR has brought the plantation sector under serious compulsions to face the challenges of the potential imports. Immediately after the removal of QRS on NR, the imports surged to 49769 tones in the year 2001-02 against the total imports of 8970 tones in the previous year. As a result of market integration and the removal of QRS on import of NR, the NR industry faces international competition. Hence the production and processing practices of NR need re-orientation to equip the Indian Rubber Industry to face global challenges in future. Improving the productivity and reducing the cost of production are the major issues which need attention in the production sector. Quality improvement, infrastructure development, Investment and Institutional strengthening, modernization of processing sector with technology up gradation, appropriated market oriented strategies, product diversification to ensure quality competitiveness, group processing with the aid of growers organization, productivity enhancement by replanting of low yielding areas by popularizing high yielding verities. Additional Income generation through inter cropping, value addition to rubber wood, rubber seed and promotion of bee keeping and use of rubber honey will be encouraged. Market development for NR will be attempted through strengthening of research and development I the area of rubber technology, particularly to development of non conventional application of NR. The environment friendly credentials of NR will be further promoted and environmental issues related to rubber cultivation and processing will be addressed to promote NR as a green commodity. In India, development of the rubber industry is under the auspicious control and supervision of Rubber Borad Government of India, a statutory body constituted under the Rubber Act of 1947 headquartered at Kottayam in Kerala. As per the figures during 2002-03, Kerala covers 84 per cent of the total area of rubber cultivation, in 476047 hectares and production 594917 tones, followed by Thripura 4.71 per cent, in 28853 hectares with a production of 12234 tones, followed by Karnataka 3.51 per cent to the extent of20294 hectares and production 13659 tones, followed by Tamil Nadu 3.33 per cent covers in areas of 18631 hectare and production 22253 tones. Assam producers in 13208 hectares and production are 1991 tones. In Meghalaya NR covers an area of 4586 hectares and production is 2648 tones, Manipur 1708 hectares and production 229 tones, Missoram 696 hectares and production 64 tones, Arunachal praesh 372 hectares and production 24 tones, Andaman and Nicobar Island producers NR in 960 hectares with a production of 421 tones, Goa produces in 870 hectares and production is 396 tones, Orrisa 552 hectares and production 51 tones, West Bengal producers in 494 hectares and with a production 63 tones, other states produces in 312 hectares with a total of 47 tones production. The totoal area under traditional region of NR is 494678 hectares and total production is 617170 tones. In the non traditional region the area under NR production is 51510 hectares and production is 17628 tones. The NR production in other states constitutes an area of 23482 hectares and production is 649435 hectares. Therefore, fluctuations in the price of robber in the national as well as in the International market will surely affect and inflict a major blow to the Output, Employment, Income and Investment of the traditionally agricultural economy like Kerala The low prices that prevailed in the Indian NR market since the end of 1996 dampened the enthusiasm of rubber growers and resulted in low out put percentae during the year 200-01. The dawn of liberalized WTO regime and the consequent after math of the removal of quantitative restrictions resulted in oscillation of prices of natural rubber and caused much havoc to the NR peasantry in Kerala and drained the resource basin of the State Government. During the period 1990-91 production of NR in India reflected a slow and study growth though price collapse persisted its onward journey after touching the boom price during 1995-96, however consumption had grown during the same period against the growth of production. This forced India to depend on International market to adjust the gap between production and consumption, except during 1998-99 when there was a surplus of 13500 tones in India. Except 2000-01 the balance of trade of Indian NR industry was unfavorable when export exceeded import The Government of India removed the quantitative restrictions with effect from April 2001 as a part of WTO commitment. Prior to that NR was included in the negative list as a restricted item of import. As a result of the removal of QRS, the restrictions on import of natural rubber have been removed. Consequently 49590 tones of NR were imported during 2001-02, which was the second highest import after the introduction of Economic Liberalization policy of Government of India during 1991. A gallery of factors contributed to the dismal performance of export besides the removal of QRS. The international price of NR is generally lower than the Indian price.India is not a regular International player in the export market of NR. Dearth of information about overseas markets of NR, inefficiency of existing marketing system, International demand for block rubber is higher than sheet rubber which constitute a major part of Indian product, Indian products are not standardized in quality as farmers are even now un aware of grading standards and quality standards at the International level, in sufficient infrastructure, sustained fall in price level and lack of price support and moral support from the part of government act as a dis incentive to producers to make further investment in NR, lack of information regarding international market demand, insufficient demand forecasting, market analysis and failure of future demand projections and production planning etc., act as a hindrance to boost our exports.

olb 4-' After the economic reforms of 1991, rubber prices began to rise very slowly and reached its zenith during 1995-96 followed by severe price dip. In 1995-96,51635 tones of rubber import witnessed in Indian market. During the dip in prices Government of India intervened in the domestic market and procured NR through the State Trading Corporation of India Ltd., (STC) during the period August 1997 to April 2001. Of late, on 12th September 2001 Government of India proclaimed statutory minimum price for

NR at rupees 3209 per 100 kg of RSS 4 and rupees 3079 for RSS 5 grade. Though, it may not cover the entire cost of production and marketing cost, as an interim relief, the Government intervention was a right step in the right direction. Even though the total domestic production was less than domestic consumption, the suppliers hold during the period was higher than the total demand except a few years. This was attributed to the excessive import than the requirement in the domestic economy. The price decline after 1995-96 could be solely due to the excess supply of NR in the Indian market because of uncontrolled import policy. As a signatory of WTO and bom member of it India could not totally restrict import to safe guard the Indian farmers especially the traditional natural rubber farmers of Kerala out of sustained fall in the price of NR. As per WTO’s agreement on agriculture NR was classified under Industrial row material unlike other plantation crops like Tea, Coffee, Cardamom and Pepper. These have been classified as agricultural commodities coming under the agreement on agriculture. As a result, the bound rate Tea is 150 per cent and Coffee and Tea is 100 per cent and for solid forms of rubber is as low as 25 per cent There fore India cannot raise import duty unless the bound rate is fixed at a high rate. The only panacea available to save NR industry from the present crisis is to raise import duty to curb further import of NR so as to make demand for the domestic NR. The future WTO agenda of Government of India should incorporate the ways and means to pressurize WTO to include NR under AoA. As a future safe guard measure the government can promote and authorize STC (State Trading Corporation) to procure rubber so as to stabilize and increase rubber prices in future. To make Indian rubber Industry globally competitive the existing marketing system should be revived to make it more efficient and competitive. The role of middle men and wholesale dealers should be avoided and a transparent system under the leadership and guidance of efficient professional management through rubber co-operative marketing societies. A marketing information system should be setup at the rubber board level with the aid of competent international market analysts so as to gather overseas information’s pertaining to international NR production, demand, supply, price, and production situations of international players in the NR market. MARKET INTERVENTIONS IN RETROSPECT (Pre WTO and Post WTO regime) The monopoly procurement of NR at fixed prices by the government during 1942- 46 marks the beginning of statutory regulation of NR prices in India. The requirement policy initializes pursued by the Government of India the post independence phase to notified consisted of and notification of minimum and maximum prices, better stocks, exports and control an imports of NR through tariff and non tarff barriers over time the Government followed a transitory policy to specific issues leading to attain self sufficiency in NR production. Two major price stabilizing policies shifts an NR imports in the early 1970 and 1990 s merit attention in the present context. Consequently, a major policy shift observed in the early 1990 s was the prominence accorded to direct imports by rubber products manufactures through duty free channels as in incentive for export of rubber products, and reduction in import duty in the back drop of the economic reforms launched in 1991. Around 96 percent of the total quantity of rubber imported in the 1990 was ranted through duty free channels, especially through the Advance Licensing Scheme (ALS). The major source of imports instilling in the elements of convergent between domestic and international prices attracted more public attention during the declining phase of domestic NR prices since 1997. Rescue operations both the Central and State Government in the form of a targeted buffer stock of NR since 1997 did not yield the desired result as the domestic price has been moving in tandem with world market. The government has banned the import of NR under ALS from February 1999 in the context of prevailing uncertainty in the domestic market. However, during the 31 months between March 1999 and September 2001, the average monthly prices of RSS 4 and 5 processed sheet rubbers were relatively stagnant and remained at low levels. Due to the ill impacts of the removal of QRS on the import of NR and sustained in pressure by the planting community the government declared statutory minimum prices of rupees 32.09 and 30.79 per kg for RSS4 and 5 grades respectively with effect from September 12, 2001. The actual farm gate prices realized by the growers appeared to be lesser than the statutory prices and these where in conformity with the price reported by rubber dealers/rubber trading community till the first week of April 2002. There had been serious operational level contradictions between the officially published salutatory minimum prices and the actual prices realized by the growers which were more closely related to international price movement. Two emerging observations from a policy angle are 1. The officially reported domestic market prices of NR after the fixation of v. statutory minimum prices till April 2002 masked the required degree of transparency. 2. It indicates the relative convergence between the former and international prices exposing operation level constraints in implementing the statutory minimum prices in a liberalized trade policy regime. The ban on NR imports though ALS from February 1999 had a salutary effect Against 20213 tones of NR imported in 1999-00 only 8970 tones were imported in 2000-01. However, the elimination of QRS on Nr import from March 31st 2001 heralded the opening up of the duty free channel of Duty Entitlement Pass Book Scheme compatible with the new policy regime. ALS is a pre exporting incentive scheme with actual user condition facilitating duty free imports of inputs required for export production subject to the fulfillment of a time bound export obligation. DEPB is a post exposed incentive scheme which provides for duty free imports by exporters without passing through the licensing route. In view of the study increase in NR imports consequent to the removal of QRS, a new form of control has been imposed which allows NR imports only though the designated ports of Kolkata and Visakhapattanam, with effect from December 10,2001. The Indian tyre companies accounted for bulk of the imports at 92.25 per cent (Kolkata) and 82.38 per cent (Visakapatanam). The estimated volume of imports of NR at 50273 tones during 2001-02, was the highest during the past five years and to a certain extent, TABLE-VL1 GRADE WISE EXPORT OF NATURAE RUBBERR (91-92-01-02) (Tones) Grade Year 1991-92 1992-93 1993-94 1994-95 1995-96

Rss/1 - - 14 58 -

Rss/2 - - 18 221 36

Rss/3 - - 13 226 305

Rss/4 --- 108 105

Rss/5 584 5988 - 23 117 Rss/6 584 5988 45 636 563

1996-97 1997-98 1998-99 1999-00 1900-01 2002 110 9 17 27 3 27

- 18 - - -- 36 84 220 158 267 444 27 45 95 50 12308 4675 164 243 198 37 27 1053 337 399 530 782 12605 6199 Source: Rubber Board, Government of India. From the above table, (Table-VI.l), it is observed that, in the grade wise export of Natural Rubber during the period of 1991-92 to 1992-93 the export of Rss/5 and Rss/6 was very high and other four grades export was zero. And during the period from 1991- 92 to 2002 the Rss/1 andv Rss/2 grade Rubber export was very low compared to other grades. TABLE-VI.2 GRADEWISE IMPORT OF NATURAL RUBBER Grade Year 90-91 91-92 92-93 93-94 94-95

Rss/1 • 304 308 129 - 144

Rss/2 - - 155 65 - Rss/3 36759 10213 13395 14547 5248

Rss/4 351 1186 1328 382 -

Rss/5 - - -- - Lateric 718 1397 626 2274 769 Block rubber 6790 1695 1986 2383 1932 Polymeric

crape 121 271 265 289 - other 294 49013 15070 17884 19940

95-96 96-97 97-98 98-99 99-00 00-01 2002 324 109 802 302 321 135 247

81 20 - - - - 19 26985 9080 10238 10903 6751 1726 23500 6787 1885 5878 413 2192 818 3633 1287 2598 1160 1139 1879 409 40923 683 863 4331 3583 2849 3075 2446 15061 4977 9463 8476 6012 2647 19387 417 211 198 218 209 160 2647 27 29738 8093 51635 19770 32070 29534 20213 8970 Source: Rubber Board, Government of India. From the above table, (Table-VI.2), it is evisdent that, during the period 1990-91 to 1994-95 the Rss/3 grade Rubber export was very high and it remained high during the year 1995-96 to 2001-02. TABLE-VI3 MONTHWISE IMPORT OF NATURAL RUBBER -1990 -91 to -2002 (INDIA) Month Year 90-91 91-92 92-93 93-94 94-95 95-96 - April 10614 2953 1597 1548 762 940 May 7759 1195 791 2894 723 820 June 8096 2153 3240 1122 84 3290 July 2598 827 2738 2868 691 1231 Aug 4718 1543 740 3031 914 16654 Sept 5977 1347 3798 1655 1460 5658 Oct 1794 472 1321 1105 1196 1754 Nob 1143 937 695 756 33 6562 Dece 2013 583 469 946 248 231 Jan 1281 604 516 392 806 810 Feb 1132 780 996 360 405 1443 March 1888 1676 983 3263 771 1172

Total 44445 15070 17884 19940 8093 51635

a ?o 96-97 97-98 98-99 99-00 00-01 01-02 1021 2347 2959 1751 255 162 1619 1737 1085 889 708 843 1584 3518 905 1284 1367 1298 3156 3378 3493 2125 1939 2992 1531 2518 3942 4573 567 7488 1057 2190 4712 2206 968 8767 876 2115 1807 1843 918 3950 727 1368 1376 1580 749 5406 1927 3168 1813 724 278 6225 1573 2741 4573 580 334 6437 1819 3457 1587 1728 232 3900 2880 3553 1282 930 655 2117

19770 32070 29534 20213 8970 49590

Source: Rubber Board, Government of India. From the the above table, (Table-VI.3), it is evident that, during the month of August- 1995-96 the import of Natural Rubber was very high and during the month of march-2000-02 the import of natural Rubber was very high. Marketing channels Indian Rubber industry The Indian Natural Rubber Industry has to complete in the International market consequent on the Market integration. NR is having a relatively lower bound rate when compared to other agricultural products, since rubber is not classified as an agricultural commodity. Increasing bound rate is also not possible / unless it is recategorized. There fore, the production available to the growers is only to the extent of bound rate minus the local taxed levied by the producing sates. This would mean that the higher prices prevalent in the market as in 1980s and even in 1990 s cannot be expected to prevail in the long run. It prices increase above that level import will take place and prices fall below a critical level, the farmers will be crucified. Absence of desired quality is not available in the domestic market and hence manufactures are forced to import. In the era of globalization and market integration, Indian manufacturing industry will have to complete with international market both in terms of price and quality while manufactures have to require ISO certification insistence in quality will be more stringent. Captive market quality of processing and packaging should be increased in so as to gain entry into the international market. Indian production and processing sector will have to reorient according to the international market standards in terms of forms of rubber having processed and also packaging specialty of NR such as CV (Constant Viscosity) rubber. Oil extended NR and blends need to be produced with appropriate packaging. One of the cardinal loopholes of the Indian processing is that rubbed smoked sheet (RSS) dominate processing for of NR. 72 per cent of the rubber produced in the country is processed in this form. The most preferred NR in the international market is technically specified rubber (TSR) and the share of TSR in the international market is increasing and it accounts for 55 percent now. The TSR produced in India is not of comparable quality in the international market mainly because of the use of low quality field coagulam. Because of a ready market for RSS or latex concentrate, and to improve the quality of TSR though appropriate change in the raw material could not succeed, along with low capacity utilization of industries operating in the country, dominance of small and marginal growers poses handicap for an accelerated transformation of TSR. Limking grass root level RPS to the TSR producing factories will help establish the needed raw material supply chain to cater international market and domestic market which is becoming quality conscious. The high volume of TSR are imported rubber indicates that domestic consumers have also started preferring TSR quality. In major rubber producing countries like Malaysia, utilization capacity of the smallest factory is 40 tonnes per day, where as the biggest factory in India is 10 tonnes per day. The tenth year plan extended support for modernization of TSR factories for the promotion of TSR factories for the promotion of upsurge in TSR production. More than 90 per cent of the trade of rubber in the country is in the private sector and sometimes this monopoly creates problems in the market. Adjustment of domestic demand and supply through yearly piece meal imports impact the price in the market adversely, and this brings in immense hardships to the framing community. To tide

<273. over/combat this, it is imperative that an alternative marketing channel with the active participation and involvement of growers for which there is tremendous scope in rubber when compared to many other commercial crops. A beginning has already been made and companies jointly provided by the rubber board and the rubber producers societies have been formed aimed at empowering the small holdings sector and it can be labeled as an agri business consortium. Revamping of this consortium can handle 30 per cent of the rubber business through these organizations in collaboration with rubber marketing Co-operative. The Indian NR therefore has to gain entry into the international market for which regular exports are required. Export initiates of NR have been quite impressive and in 2003, more than 55000 tones NR valued at RS. 185 crores was exported to about 29 countries, which accounts for 8 per cent of India’s production in a global market with about 7 million tones, the Indian rubber growers should aim at both domestic and vast international market. Hence, economic prudence prescribes to produce NR availing of the resources and putting them to the optimum use so as to attain cost effectiveness with competitive health. . Demand forecasters forecast that by 2020 the NR requirement in the world would be about 11.5 million tonnes. At the present phase world production constraints may not allow it to exceed 9 million tonnes, as the main players in the international market such as Indonesia, Malaysia and Thailand may not be able to sustain the current pace of production. With proper support and extension services Indian NR production is expected to increase as per capita consumption is one of the lowest to the time of 700 gram, against 14 kg in the developed countries. The anticipated production - consumption gulf in India by 2007-2008 is estimated to be 80000 tonnes this point to the tremendous scoped the NR industry holds for the future. Rubber Co-operatives Rubber small holder had long remained as unorganized lot. Considering the need to promote amongst them a spirit of sec self, the rubber board took vigorous stepts from early 1960 to encourage them to organize under dedicated co-operatives. The help provided included organizational assistance, share participations, working capital loans etc. there are 40 rubber marketing co-operatives with either districts or taluk as areas of operation, besides their daily routine work also under take rubber marketing, plantation crops, plantation inputs such as fertilizers, fungicides, for coagulation of latex, tapping aids etc., A number of these marketing co-operative also own and run large sized modem robber processing factories. In 1971, an apex institution for the rubber marketing co-operatives, namely the Kerala State Co operative Rubber Marketing Federation Ltd., was registered and established in Kochi. Besides rubber marketing co-operatives, the Government of Kerala and the Rubber Board are shareholders of the federation. The federation contracts activities like, fertlising, mixing, rubber marketing, marketing of chemicals, fungicides and undertaking aerial spraying, processing solid robber etc., on all India bases. There are 200 villege level Service Co operatives and Co-operative Banks assist the rubber marketing federation in this endeavor. It also conduct seminars, study classes etc, for the benefit of rubber growers. It also extends assistance for modernization and expansion of processing factories and units, rehabilitation of sick industrial co operatives, subsidizing installation of diesel generators in processing factories. Rubber Producers societies The robber plantation sector in India is dominated by small holdings which accounts for 88 per cent of the production and area of robber in the country. For the effective transfer of technology and for empowerment of the sector, institutional building is necessary. The village level co-operative have not been able to bring in a vast majority of the rubber growers into their fold permitting them to derive benefits. To tackle this issue the robber board permitted to promote formation of grass root level organizations at the village level known as robber producers societies. RPS have been functioning effectively in implementing several of Board extension programmes such as setting up of demonstration plots, distribution of inputs, implementation of women development programmes, arranging of campus training, seminars and group meetings, identification of replantable areas besides directly engaging in collection of latex and community processing. At the end of 2000-2001, there are 2100 RPSs registered in Kerala and similar organizations are being formed in the non traditional regions also.

<274 Export Promotion Measures Rubber board is designed as an export promotion council (EPC) for export of natural rubber. Besides issuing Registration cum membership certificate (RCMC) and certificate of origin (CoO), the board provides assistance to promote export of natural rubber and related products. Even though the country had been exporting small quantities of natural rubber during the fast many years, India could not make a head way in the export front due to a host of reasons. (1) The International price of NR is generally lower than the domestic price. (2)Indian rubber industry did not have an export culture in the past. (3) Quality and packaging of Indian NR are not up to International standards. (4) Lack of information/distorted information about average as NR market. (5) Inefficiency of the export marketing system To overcome these lacunas and to promote export, the rubber board is extending the following support to the exporters. (1) Financial assistance to the exporters for preparing rubber into exportable forms and presentation to minimize cost of production and to maintain parity and prices. This may be also help to minimize the price differences of rubber in the domestic and also to maintain parity in prices. (2) Technical and financial assistance for importing the quality of exportable rubber at International standards and specifications. (3) Assistance required for quality certification and packaging of exportable rubber as per International standards. (4) Assistance to build up humidity controlled warehouses and other infrastructure required to facilitate export of natural rubber. (5) Market information and market identification for different form of natural rubber in target countries. (6) Identification of NR imports in other countries and provide live information. (7) Sponsor trade delegations to participate in International Trade Fairs and Exhibitions related with rubber.

SCI (8) Provide International publicity in potential NR importing countries about India’s capability for supplying quality rubber at competitive rates on a regular basis. (9) Create awareness among potential exporters about export procedures, formalities and in and out knowledge on latest developments or changes in export/import policy matters. (10) Complete Research and Development support to NR processors to make processed rubber acceptable in the International market. The Board has already taken measures to establish rubber based industrial parks exclusively to promote organized marketing and export of rubber products from India. Organising trade delegations, Buyer-seller meets, employing international media, exporters, catalogues, internet facilities etc., are the other priority areas for conducting export promotion measures. Problems of marketing The following problems have been identified and producers were also asked to rank the probleions which were considered to be the hurdles in coconut marketing. (1) Lack of transport facilities. (2) High cost of transportation. (3) Lack of adequate storage. (4) Lack of finance (5) Absence of market intelligence. (6) Heavy loss due to unrushed coconut. (7) Lack of proper information about regulated markets. (8) Oil millers’ price is very low. Constraints to technology development The major constraints which lenders the development of processing industry os the inadequate support extended to technology development in the country. In the existing research institutes, technological research and coconut has received only law priority and the major emphasis ha been on agricultural research. The coconut Development Board which has been established for the integrated development of coconut industry in the country has no mandate for direct involvement in technological research nor for effective participation in the processing and marketing activates. Some of the state

<276 sector organizations which were created for modernizing coconut industry have not so far bestowed adequate diversification and by product utilization not to providing marketing support to the existing industrial units for strengthening their operational large. These organizations have also failed to induce the coconut farmers to undertake primary processing at the grass root level and become effective dynamic participants in the domestic coconut industry. Another major constraint is the low priority coconut industry receives at the national levels as the contribution of coconut culture and industry to the national economy is very insignificant though and coir products constitute an export commodity, the average export earnings are not large enough to attract major investment in the sector. With further expansion of the area under coconut in the non traditional sector/belts; rejuvenation of the industry in the traditional sector, modernization of the industry through the development and application of improved processing technologies especially in the area of product diversification and by product utilization, it would be possible to expand and strengthen coconut processing sector to a position of significance in the national economy along with generation of more employment and income in the rural under developed aeas of the economy. Marketing Channels of Coconut in Kerala In Kerala state whether production of milling copra is a wide spread rural activity, it is still controlled by the private copra producers in the villages. The situation is likely to continue as long as the small and marginal coconut farmers who constitute the bulk of the coconut farming community are not organized into co-operatives and facilities provided for the processing of coconut into copra and other products presently, most of the existing societies in the state do not produce copra but only function as agencies for the purchase of copra for other organizations. This system benefits only the private copra producers and not farmers. For the success of the co-operative movement in the processing sector, the societies of the coconut farmers at both primary and higher levels shall have the freedom to determine. Their own functional areas and linked to that of other major oils and their over all availability in the country.

>80 Si.ll Coconut Marketing in Kannur District: Production process is complete only when the produced output is marketed fruit fully and profitably. The market price should protect the interests to coconut growers coconut consumers, and remunerative to the oil milling injury. The proportion of the people and the importance and value attached to post harvest handling occupies a pride of place in the value addition process of the economy. Market forces determine the prices of coconut all long the west cost. However, on rarer occasions, this equation may not hold good. The coconut products obtained form coconut find popular use though out the country. There is already efficient trade Chanels established for the commodity. Big business house who deal in other generable oils are controls trade in coconut oil which is the vital co commercial product of value from coconut. Huge capital investment associated with superlative nature of trade in coconut oil hindered the new entrepreneurs to indulge into the business. The total loan on the import of copra and oil from 1774 has helped mill owners in Kerala to take coconut oil trade in a big way. Marketable surplus the residential best with the produced after meeting his requirement for family consumption of coconut farm needs for raising new seedlings, find payments labourers and coconut price climbers. The size of holding production of the coconut, size of family, and the relative price of food grains and non farm income are the determining variables. The net marketed surplus may be expected to be negative for very small farmers. The two major commercial revealed that are milling copra an coconut oil. 65 percent of the coconut produced in Kannur district of Kerala state converted into copra and the rest 35% is used for consumption. 52 percent of the total production is used in Kerala milling sector for oil extraction and 48 percent is traded in other states. Cochin is the most important market for coconut and coconut oil in Kerala and Cochin market price influences the prices of this commodity in all other Indian markets The four marketing channels existing in Kannur district of Kerala are:- (1) Producer - Trader-Wholesale dealers-Factory-Mill owners. (2) Producer - Middlemen-Whole Sale dealers-Factory agents/owners (3) Producer - Primary Co-operative societies - Dist co-operatives- Kerafed

£78 (4)Producer - In farm Market - Kerafed Trade Exchange of value added copra more profitable to the producer than the sale of raw material coconut In the rural community of taliparambaTaluk, where surplus family labour is available, 80 percent are making copra using their leisure time and only 20 percent farmers sold nature raw sold coconut In Kannur Taluk, where the availability of family labour is less due various other subsidiary occupations, only to percent are making copra and 40% farmers sold raw coconut to traders or middle none. Menon and Pandala Copra may be made both in the form of cups of balls. A lion’s share of the coconut produced in North Malabar or Kannur. The district of Kerala is used for making copra. Cup copra is made either by sun drying or kiln drying. To obtain good quality copra it is necessary dry to cups in the sum continuously for 5 to 7 days. Ball copra in the form of ball is made from whole unsplit nuts and smoked or stirred till they are quite dry. The yield of copra is found to be influenced by the size and maturity of nuts, the season of harvesting, the period of storage of buts, the age and characteristics of the palm and soil and climatic conditions. Copra is graded on considerations of colour, elatedness, moisture contont size and moldiness and graded as Dil pasant, office pass and milling copra Teli copra etc. Coconut (1) India’s oil seeds sector has passed through several phases since 1980. There was a per-capita increase in the production of edible oils from 1.60 Million Tonnes in 1980-81 to 1.09 M.tonne by 1985-86 (2) In the second phase, production was stagnant and attracted huge imports and increase in per-capita consumption. In 1992-93, MS(imports) declined to 0.1 Million tonnes against 2 million tonnes in 1987-88 (3) In the liberalized economic environment and post WTO era, imports started rising from 1995-96 and domestic production of edible oil started to fall due to a steep decline in real prices. (4) At present, India has emerged as the largest importer of edible oil in the world and morethan 40 percent of domestic demand is not met through imports ‘this situation is attributed to trade liberalization in response to WTO obligations (removal of QRS) and there is concern over about its adverse impact on producers. (5) On the demand side, annual availability of edible oil was 6.5 KG per person in 1990s and risen to lOKg and the increase in per capita income pushes demand elasticity to 0.7 percent The real prices of edible oils during the post WTO period first reached the lowest level recorded since 1980 -81 and then plummeted ti half the price level recorded during 1991-92 forced the Government to import liberal oil. Increase in income elasticity hs created a gulf between domestic foundation and consumption of edible oils, which is filled by imports. Slash in prices due to removal of qualitative restrictions hurt producers, but consumers have gained considerably. Among the imports, palm oil, a substitute of coconut oil has remained the biggest item since 1994-95. Palm Oil import has increased from 1532 million Tonnes to 1550 Million tonnes during the period 1990- 91 to 1994-99 and from 5332 M.T to 7837 highest impor5s during 1999-2000) during 1995-96 to 2001-02 Indian edible Oil do not complete well with imports, as domestic prices are higher than international markets. It is in Oils that India is a shaky ground. Edible oils are essential commodities and consumer interests are the major determinants of policies. High income elasticity of demand keeps demand buoyant and high price elasticity makes prices valuable. These forces led to massive imports in the mid 1980 and the initiation of an import strategy. Low world prices of edible oils are a consequence of high levels of protection and agricultural subsides in developed countries, the Indian oil seeds sector wile remain under pressure even as these are properly adjusted. An inefficient processing sector and the policy of reservations for village and small industries have contributed to the uncompetitive oil sector in the country. In spite of the drain in foreign exchange reserves, import values have become too large and upsurge in world prices of this politically suggestive commodity will have serious consequences. High income elasticity will continue to push demand to higher levels. Efforts to raise production levels of oil seeds through cost reducing nical charge and research and development must therefore receive greater emphasis. In value addition terms, the

.'4* efficiency of the processing sector should also be targeted through policy reforms. In the liberalized economic environment of world production, world trade and integration of prices and costs of national or WTO member countries on the one hand and removal of quantitative restrictions from 1995 on the other, prices of fluctuations of agricultural commodities has up surged emanated all over the world including India and Kerala economy and hence the prices of the agricultural goods dip to the roch bottom level created a mismatch between cost of production at the domestic level and international level under the given state of technology. The agro oriented cash crop economy of Kerala which produces coconut, rubber, coffee, tea and spices are the most worstly affected victims of this down trend of prices. Due to the dumping of cheap inflow of imports form foreign markets, the demand for the crop has decreased in the home market as an aftermath of reduced tariffication policies of (IRS) the central government The reduction of import duty on pal oil, and artificial rubber has reduced the prices of coconut copra, coconut oil and the prices of natural rubber. The Kerala economy survives out of the primary export of those agricultural crops, and hence the removal of QRS inflicted a great shock to revenue earning of the state economy in general and in particular the agriculturists who earned their livelihood primarily from these cash crops. Coconut and rubber are the principal revenue earning cash crops of the Kerala economy and the cultivating area spread over 9 lakh hectors and that of rubber 4.73 lakh in 2000. The price of copra has fallen at a lowest level at the rate of Rs. 1780-2000 per quintal, the ever lowers price quated for the last two decades in Kerala. The price of fresh coconut has fallen from an attractive remunerative price of Rs. 5 to Rs. 2. The total production of coconut in the state is around 516.7 core nut and that of rubber is 5.85 lakh tones. Estimate of the sstat3 Agricultural Department, the expected loss of the coconut farmers is Rs. 4500 crores per year. The price of the rubber RSS IV, grade has fallen from Rs. 51 per kg in 1995 to Rs. 24 in 2000. This is far below the lack mark price of Rs. 34.05 per kg in 1998. The removal of QRS by the Government of India has encouraged the price import of plum oil form Srilanka, Singapore, Malasysia and Indonesia. The industrial sector, especially Vanaspathi, soaps and cosmetics, has largely replaced coconut oil with palm oil that reduced the domestic demand for coconut oil. Though India is self sufficient in the rubber production, it is bound to import 3 to 5 percent of domestic consumption as a part of WTO stipulations due to the industrial raw material status of the rubber. Even though price standards of domestic and international level is more or less parity, the industrial sector still resorts to imports of rubber in bulk quantities as the import duty is marginal which is less than the additional transport and procurement expense. As a consequence of crisis in the cash crop sector, farmers are facing sluggish demand for their products at the damp cheap price level and resulted in the filing up of goods at the hands of the farmers. The institutional arrangements markedly the government to procure copra and rubber through NAFED ended in a heavy loss. The inefficient governance and management paved the way for middlemen to make capital output Most of the farmers has altercated the revenue recovery of the homesteads as their inability to repay the loans from scheduled banks and co operative banks. Recently, as a last resort some farmers committed suicide in Kerala life their country parts in Karnataka and Andrapradesh due to their inability to repay the loan arrears. A lot of uniformed criticism is directed towards the approach of the central government state government and research institutions, towards their policy attitudes and the product and process innovation; Research institutions and universities activities are not fanner centered these institutional disaster delimited the scope of innovating diversified uses of these commodities. The western countries, innovated bio-substitutes for coconut oil and rubber - even though they are not the producers of these commodities the invention of synthetic rubber and bio technology based oils indirectly reduced the demand of our primary good exports in the informational market. They also speeded in reducing raw material requirements of their new innovations. India is the fourth largest produced and subsumed of rubber after Thailand, Indonesia and Malaysia,. Indian demand for rubber is pretty high to meet the requirements of 24 manufacturing units 250 medium and SS. 500 units in the organized sector to produce more than 35,000 diversified products. The participation of Kerala in the rubber based industrial sector insignificant due to institutional failure and dearth of good entrepreneurship. Traditionally copra unit are processing the Kerala under open sunlight. Exceptionally, copra diverse is used during the monsoon season. Coconut shells and husks are used as fire food for drying operation. Though solar driers are available, it is not affordable to the majority of marginal farmers. Scientific methods for extraditing copra from fresh raw coconut directly is available, but these are not popular among the marginal fanners as they require huge investment, and hence not the felt need of the farers are such refined technological plan is functioning at Kozhikode under the government sponsorship. Rubber tapping and processing is also at the traditional level. Manual tapping and poor technological base of processing renders low prices for RSS V grade. As farmers are not getting adequate remunerative prices for their products, they would not take any serious effort to increase the production act productivity either by reducing cost of cultivation or innovations of technology. The land oveness in general is lacking hard work nature and dedication towards work by nature seeks a high return with the least efforts. In the traditional cenory, a balance existed between the cultivation of food and non food crops in the state and also between the uses of the coconut tree in its diversified uses. Due to the protectionist pressures accorded to certain crops and the price volatility of cash crops over other crops dismantled the natural balance between crops. Coconut economy of Kerala is basically concentrated upon homestead cultivation and a large part of the holdings are uneconomic and are owned by individual holders with measure sources. The price volatility of coconut and coconut oil completed the farmers to convert paddy field into coconut gardens, increased the area of cultivation and putout and created a mismatch between Demand and supply and less than optimal allocation of resources of the economy. The competition from neighboring states like Tamil nadu, Karnataka is another major threat. They are minimizing cost and maximizing out put and profit with the aid of modem agricultural technology, cheat labor and irrigation compiled with mixed seed of coconut. Tender coconut is a posing a real threat to Kerala coconut producers. Root will disease of coconut during 1980s and mite attach in the recent years have resulted in loss of crops to the tune of 35 to 40 percent of total out put. Falling demos tic price and simultaneous reduction is nut production increase the loss two fold. In Kerala, due to existence high wages and other social security measures neither the producers, not the industrialists are interested in processing rubber and coconut. Hence, they are exported as primary products without any value addition or innovations. In the wake of globalization, due to the subsidy policies of uruguary round, government cannot provide and protect these producers as against developed countries; hence spice (price) fluctuation in the international market is natural. The present trend under liberalization is that, primary products are always under priced, and a manufactured goods made out of hi-technology is sold at exorbitant rates by MNCS. Absence of proper post WTO measures to tackle the sustained fall in prices of primary products amidst cheap dumping. Impact of Minimum Support Price for Copra on Market Prices of Coconut Products The coconut industry is entred arojnd two major coconut products viz copra and coconut oil. The farm gate price of coconut is determined by thw wholesale market pric of coconut oil. There is an accepted norm for the determination of the price of coconut based on the wholesale price of the oil. The price of one quintal of coconut oil is more or less equivalent to the price of 1000 coconuts all along the west coast. However on rare occasions this equation may not hold good. For determining the prices for coconut and its products, industry including growers and consumers had to be taken into account. The price should be attractive to the farmers, affordable to the consumers and remunerative to the industry. Therefore by stabilization of the price of coconut oil it is implied that it should rule within a reasonable range so that the consumption/utilization of coconut oil and other coconut products could be retained within the supply and demand flame. The central Government announces the Minimum Support Price (MSP) for both the milling and the ball copra in every year on the recommendations of the Commission for Agricultural Costs and Prices (CACP). The Commission visit the states concerned well before each season and collect relevant information with regard to the cost of cultivation of coconut, cost of production of copra, etc after holding discussions with coconut farmers trader’s associations, state government, government organization e etc. The MSP recommended is of a particular crop season and the Commission makes its recommendation every year, milling copra was included in the list commodities under the purview of the Commission in the year 1986 and subsequently edible ball copra was also added in 1996. For the current season 2000, the Government of India announced the Minimum Support Price (MSP) for copra in the middle fof April 2000. The MSP announced is as given below:- Milling copra Rs. 3250 (Per quintal for FAQ) Ball copra - Rs. 3500 (Per quintal for FAQ) The National Agricultural Co-operative Marketing Federation of India Ltd is the nodal agency for undertaking purchase of copra under the Price Support Scheme (PSS). The purchases would be affected through the State Cooperative Marketing Federation (STATEFEDS) and Oilseeds Growers Federation (OILFED). In Kerala state, the KERAFED and the MARKETFED ae the procuring agencies which control are wide net work of co-operative marketing societies as well as the service co operative banks to undertake the marketing operations at the grassroots level. The scope of the present discussion is limited only to the MSP of milling copra and its impact on the market price in Kerala. The peak season of harvest of coconut along the west coast especially in Kerala is from January to May and the lean season is from June to December. However with the expansion of area under coconut the contribution of other states to the total production of the crop has become significant thereby exerting influence on the total demand and supply equilibrium. The peak harvest season in Kerala coincides with the lean season in some other states and vice versa. For example although Kerala enjoyed the monopoly of production of milling copra till recently, the recently the contribution of Tamil Nadu to the total production of milling copra is estimated to be steadily on the increasing trend. It is incidental that the peak harvest season in Kerala coincides with the lean season in Tamil Nadu and vice versa An attempt is made here for an objective study on the effect of MSP over the ruling price of milling copra in Kerala both in the peak and lean seasons. The MSP announced for milling copra since 1986 and the average market price of copra at Kochi market in peak harvest season and off season. The Table also presents the difference between the actual market price and the MSP of copra. It is observed that there were wide fluctuations in the price of coconut, copra and coconut oil during the peak and lean seasons as well as in the yearly average price. TABLE-VI.4 IMPACT OF MSP FOR COPRA ON MARKET PRICE (In Rs. Per qtl)

Year/ MSP Price of copra per quintal Price Peak Difference in Off Difference in Yearly Difference in season price over season price over MSP average price over averag MSP average MSP e % % % 1986 1200 1159 -41 -3 1685 485 40 1422 222 19

1987 ND 1855 - - 2127 - - 1991 - -

1988 ND 2067 -- 2142 - - 2104 - - 1989 1500 1692 192 13 1517 17 1 1605 105 7 1990 1600 1585 -50 -1 2019 419 26 1802 202 13 1991 1700 2341 641 38 2979 1279 75 2660 960 56

1992 ND 2912 -- 3058 -- 2985 - - 1993 2150 2813 663 31 2346 196 9 2580 430 20 1994 2350 2118 -232 -10 2212 -138 -8 2165 -185 -8 1995 2500 2131 -369 -15 2502 2 0 2316 -184 -7 1996 2500 2686 186 7 3247 747 13 2967 467 19 1997 2700 3629 929 34 3338 638 24 3484 784 29 1998 2900 2827 -73 -3 3028 128 4 3194 294 10 1999 3100 3376 276 9 . 3636 536 17 3825 725 23 2000 3250 2710 -540 -17 Source: Coconut Board, Government of India.

Since the first announcement of MSP for milling copra in 1986, it was only in the year 1994 that the off season average market price ruled below the MSP. The MSP for 1994 season was Rs. 2350 per quintal while the off season average market price was only Rs. 2212, which was 6% less than the MSP. On many occasions during 1986, 1980,1994,1995,1998 and 2000 the average wholesale market price in the peak season ruled below the MSP. The downward movement of prices depicted a recurring trend, repeating the phenomenon in very fourth year. An exception is noticed in the year 2000 when the cycle was repeated in the 3rd year. The actual ruling price of milling copra at Rs.2250 per quintal during the current season is the lowest even report compared to MSP, which is more than 30 percent less than the MSP for the 2000 season (Table-V.4). There are many reasons attributed for this strange phenomenon. It is a well accepted fact that the international trade moves more or less under a barter system. Availability of low priced imported palmolein, which is a close substitute to edible coconut oil, is the major reason as per the assessment made by the Board. The United State Department of Agriculture estimated that the world palm oil production would rise to a record level of 20.6 million tons in 1999/2000. Malasia is the largest producer with 10.2 million tones the global consumption is estimated to be around 20.4 million tons and India is the major importer of palmolein with 2.3 million tons in the year 1999/2000. At present India import palmolein from Malasia. It is a well accepted fact that the international trade moves more or less under a barter system. Exceptions to this system are not rare under certain conditions. India exports manpower, machineries, and materials and also undertakes engineering contracts such as construction of railway projects etc. in other countries. The payments for these visible and invisible exports are more or less made on the principle of barter system. India is a signatory to the WTO agreement and it is obligatory on her part to allow export and import of materials and services under liberalized economic regime. Therefore it’s quite possible that the availability of palmolein in Indian markets may continue in future also. Protection to the domestic coconut industry by the government cannot be expected for ever. The higher domestic price level of coconut oil is due to the protection and once it is removed the Indian coconut industry is bound to compete at the global level. An objective analysis of the procurement of copra under MSP will reveal the inherent lacunae involved in and the practical problems underlying in the operation of the Price Support Scheme.The annual production of coconut in Kerala alone is

S&l estimated to be around 667 crores. More than 60% of the total production is harvested during the peak season of about six months and it is estimated that 60% of the total production is converted into milling copra. It means that around 3 lakhs. M.T of copra will be available in Kerala market alone during the peak season. Here is the crux of the problem. The net difference between MSP and the prevailing market rate of copra is around Rs. 1000 per quintal. Apart, from cost of transportation and storage, interest of capital and reasonable profit is to be added. If any upward trend in the market prices of copra is to be created, at lest 25 to 30% of the total production of copra has to be procured which involves a very huge investment of around Rs. 250-300 crores. It is quite doubtful whether any agency can afford to invest such a huge sum during period of 3 months from March to May. Even if the funds are made available, the infrastructure required for the procuring agencies for collection storages and processing of the procured copra is inadequate at present. The procured copra cannot be stored for a long period even under appropriate storage conditions. It is to be crushed at least within six months after the procurement. The situation will be further worsened when the crushed oil is released into the market. In short, the Price Support Scheme through market intervention is not the grand panacea for correction of the illness of the industry. Need of the hour is to devise long terms strategies to overcome the impending crisis of the coconut industry in our country. Long Term Strategy for stabilizing coconut industry Manufacture and marketing of nontraditional coconut products such as convenience food items like the coconut cream, coconut milk, coconut honey, etc of course need all support and encouragement. Technologies are also available for the manufacture of such items. But the fact remains that such industries and ventures require huge investments and is not a feasible proposition at the grower’s level. Under the present context, market promotion of non conational products is too expensive an the small and medium entrepreneurs will not be in a position to incur such huge expenditure on market promotion. Therefore it is imperative to critically examine how best the coconut farmers should be assisted to get a remunerative price for their produce. Marketing Agricultural marketing plays a crucial role in agricultural development which is a sinqua none or pre-requisite for development in other sectors and for the over all development of the economy. In a changing economic scenario, the marketing systems comprise several agencies and institutions, each playing an import role in the system. Problems of marketing The following problems have been identified and producers were also asked to rank the probleions which were considered to be the hurdles in coconut marketing. (1) Lack of transport facilities. (2) High cost of transportation. (3) Lack of adequate storage. (4) Lack of finance (5) Absence of market intelligence. (6) Heavy loss due to unrushed coconut. (7) Lack of proper information about regulated markets. (8) Oil millers’ price is very low. TABLE-VI.5 INDIA: CONTRIBUTION FROM THE COCONUT SECTOR TO EXPORT EARNINGS, 1994 -1998 Year Total Exports Coconut Exports 1 % (Rs. 1000) (Rs. 1000) 1994 697,513,900 1,588,672 0.23 1995 826,741,100 1,956,524 0.24 1996 1,063,533,400 2,103,487 0.20 1997 1,188,170,800 2,255,653 0.19 1998 1,301,006,400 2,506,687 0.19 Source: Coir Board of India - International Financial Statistics IMF From the the above table, (Table-VI.5), it is evident that, during the year 1998 the total Coconut export was very high Rs 1,301,006,400. TABLE-VI.6 INDIA - EXPORT OF COIR YARN, VOLUME AND FOB VALUE, 1995 - 1999 Country 1995 1996 1997 1998 1999 Belgium 946 660 844 1011 726 Denmark 110 0 50 48 13 France 2502 1314 1370 1995 1011 Germany 1233 1036 1038 1518 1258 Italy 3803 3030 3157 4995 3255 Netherland 2580 2397 2657 2384 2244 Poland 48 72 48 24 30 Portugal 960 827 731 1341 532 Speain 594 233 156 362 372 Sweeden 5 0 0 0 0 United Kingdom 74 16 20 21 15 Yugoslavia 0 65 0 25 12 U.S.A 1078 1067 1942 1852 1683 Kuwait 310 457 326 284 330 Morocco 153 216 144 308 179 Soudi Arabia 207 323 261 96 179 Turkey 436 482 463 0"fKAA "f 328 U.A. Emirate 727 497 493 588 380 Others 366 399 538 449 548 Source: Coir Board oi India From the the above table, (Table-V.6), it is evident that, Italy was first in importing coir yam from India, while Netherland stands second in importing coir yam and U.S.A. is the third highest buyer of coir yam from India during the period 1995 to 1999. A possible remedy suggested is to reduce the total availability of milling copra and coconut oil ultimately minimizing the dependence on these products for price stability. Under such a situation the simple economic principle of demand and supply will operate and the price will be stabilized. Now, the next question is how to reduce the supply of copra and coconut oil, the optimum utilization of the crop since its flowering stage has to be attempted. It is gathered that there are many medicinal properties especially under ayurvedic system for the coconut inflorescence. The potentialities for making effect five use of coconut inflorescence could be explored. Another potential avenue is toddy tapping, Sweet coconut toddy is in demand as a natural soft drink. Unfermented coconut toddy could be popularized as a soft drink. Reports reveal that the farmer could be ensured of better returns from coconut trees if the trees are tapped for toddy. Preservation of sweet toddy as a soft drink is possible with the advent of technological innovations. Tender coconut is another focal product which is a very valuable natural soft drink. There is immense scope for utilizing a major share of coconut production at the tender state itself and thereby eliminating a sizable portion of the mature nuts for conversion as milling copra. The farmers and processors are to be educated for the production of spheroid quality copra. This could be achieved by processing coconut in the most hygienic manner especially by sing modem copra dryers including solar dryers. Selected copra so produced could be value and marketed as edible cup copra always fetching a premium price. Yet another feasible suggestion is to reduce the coconut palm population per units area by increasing the spacing under coconut and also by removal of severely debases affected, senile and unproductive palm in all coconut holding. The vacant spaces could be filled up by introduction of remunerative eco-friendly crops such as pepper, cocoa, cashew and other horticultural crops. Such a mix cropping system will ensure not only higher income from a unit area but will also provide adequate protection from erratic price fluctuations of a single agricultural produce. Multispecies cropping will enhance the productivity of coconut lands in the country and help sustainable coconut farming. Coir India and Sri Lanka are the largest producers of this natural fibre. India loads in the export of coir farm and value added coir products such as mats, mat tings and rags and carpets, coir form and geo textiles. Besides India, some member countries of European community also manufacture coir products and power looms in their country using coir farm imported from India, Sri Lanka was the only other country from where newly developed coir products have recently been marketed by various countries like Asustralia, North America, Korea Nother Lands, Russia, Malassia, azeh republic and slovenia Fmce, Souther Kerala U.S.A. Coir is made from coconut huks. It is a highly labour intensive industry, covering a range of activities including collection of husk, regtting, fibre graction, spinning and manufacture of coir and coir products. Coir is of two types in white and brown. The production of white and brown coir in the country is to the tune of250300 tonnes. The non fibrous tissue of husk referred as coir pith, companies like BMW and Mercedes Benz and also spring mattress unit. This is a natural bio degradable co-friendly material fro use in civil.and Geo technical engineering. It is widely used in road embankment Bridge approach embankment water beds and Earth dams gully plugs, Pond, river, canal, sea embankment, mountain side, Ski slopes, areas damaged by landslide, restoring ecology in mine fields, Helipads and unpaved road construction, land scaping water course, golf courses, sand dumes, trench drains, silt fence, bank embankments and and protection of ash dying ponds. Co - Co - peat The by-product of coir is co co peat. It protects plants from bacterial and fungal infestations, there by stimulates plant growth. It has excellent oxygenation for wealthy root development. It aids irrigation of new soil structure and improves microbial activities in the soil. It is especially good for alkaline garden soils. It is also ideal for potting mix, new lawns, and vegetable cultivation, Home garden, dry land agriculture, plantation and forestry. It is a bio degradable product and unlike chemical fertilizer, it is also eco friendly and well accepted in I.N. market. Coir pith industry is confident of achieving a business volume of 14 100 crore by 2010. The industry, through relatively nascent in our country has managed to establish its position in the global arena. India is exporting about 600 to 750 tonnes every monthprices have also taken a beating. From a level of $240 Metric tone of coir of coir within the mid 1990s, it was slipped half to $120 tone at present can export more. But the constraint is the rising fright charges, lack of adequate shipping lines to compete with Sri Lanka in volume. To addressthese issues and to strengthen the industry coir board is initiating ti establish a coir pith research institute in TamilNadu, so that this industry may emerge as a dollar eming products in today’s world. Our new eco friendly products can also be used for environmental protection and conservation hence has bright. As an environmental protector and conservator, coir pith has future in India as well I.N. Market and hence our product range should be enhanced to cater the market in India and all other countries. Coconut Products A large number of coconut products are manufactured in the country which have both domestic and export market. Vinegar and soft drink are manufactured in the country from coconut water. Tender water concentrate is another product which is manufactured and marketed successfully. Know-how for the preservation and packing of tender coconut water has been transferred to three firms in the country and one firm has already established a plant near Mandya in Karnataka and launched the product in the market. Nata-de-coco is a gelatinous is a gelatinous delicacy formed by the action of a micro-organism Acetobator rylinium in a culture medium of coconut water. The know-how for its manufacture is available with the Board. 1. Tender Coconut Water, 2.Copra, 3.Coconut Oil, 4.Raw kemal, S.CoconutCake, 6. Coconut Tody, 7.Coconut Shell based Products, 8.Coconut Wood based Products 9. Coconut Leaves and 10. Coir Pith Tender Coconut Water The processing and packing of tender coconut water with a capacity of 10,000 tender nuts per day involves an investment ranging from Rs. 35-40 lakhs covering plant and machinery and margin money for working capital a direct employment potential of 30 personnel.. The profitability after taking into account the prevailing prices of finished product works out to be around 20 per cent with a pay back of 3 years. Tender coconut water enjoys a great potential as a health drink in India and International market. The Coconut Development Board in collaboration with Defence Food Research Laboratary. Mysore has developed the technology for packing tender coconut water in pouches/aluminium cans. Spray Dried Coconut Milk Products Spray dried coconut milk powder if dissolved in water will result in coconut milk which can be used in place of fresh coconut milk for food preparations/beverages in households and food industries by dissolving it in water. Central Food Technological Research Institute, Mysore with the financial assistance of the Board has developed the technology for spray dried coconut milk powder which is available to entrepreneurs at a total know-how fee of Rs. 5 lakhs. The total capital investment for plant and machinery along whith working capital margin comes to around Rs. 2.36 Crores. The internal rate of return works out to be about 16 per cent with a pay back period of about 3 years. On an average one thousand coconuts would yield about 99.6 kg of spray dried coconut milk powder. Spray dried coconut milk powder has a tremendous market potential in India and in international market. Direct employment potential is around 40 personal. Coconut Cream Coconut cream is the processed milk extracted from fresh matured coconuts. This is instant product, which can either be used directly or diluted with water to make various preparations such as curries, sweets, desserts, puddings, etc. It can also be used in the manufacture of baker products and for flavouring food stuffs. Processed and packed coconut cream has a shelf life of six months and once opened it should be stored in refrigerator for subsequent use. Coconut shell Powder Coconut shell powder is manufactured from matured coconut shells. The manufacture of coconut shell powder is not an organic industry in India. The product finds extensive use in plywood and laminated board industry as a phenolic extruder and as filler in synthetic resin glues, mosquito coils and agarbathis. Coconut shell powder is preferred to other alternate material available in the uniformity in quality and chemical composition, better properties in respect of water absorption and resistance to fungal attack. The product is manufactured in sizes raining 80-200 mesh. Keeping in view of the vast industrial uses, the demand for coconut shell powder appears to be promising. Nata-de-coco Nata-de-coco a cellulosic white to creamy yello substance formed by acetobacter aceti subspecies xyilinium, on the surface of sugar enriched coconut water or coconut milk or plant extract or fruit juices or other waste materials rich in sugar. It is popularly used as dessert. It is also used as an ingredient in other food products, such as ice cream, fruit cocktails, etc. Disiccated Coconut Disiccated Coconut Powder is obtained by drying ground or shredded coconut kernel after the removal of brown testa. I find extensive use in confectionaries, puddings and many other food preparations as a substitute to raw grated coconut. In India the product is manufactured by small scale units scattered in Karnataka, Tamil Nadu, Kerala and Andhra Pradesh. A study conducted by the Coconut Development Board has revealed that a growing consumer demand for desiccated coconut powder could be developed in the country by resorting to organized market promotion activities for the popularization of the product in consumer packs for household uses. The survey has also shown that desiccated coconut powder in consumer packs for is acceptable not only in non-coconut producing states but also in Kerala. From the survey it was revealed that a sizeable section of the middle class and upper class families residing in cities and towns in Kerala would prefer desiccated coconut powder, if readily available, to raw nuts. Activated Carbon Activated carbon is non-graphite from of carbon which could be produced from any carbonanceous material such as coal, lignite, wood, paddy husk, coir pith, coconut shell etc. Activated carbon manufactured from coconut shell is considered superior to these obtained from other sources mainly because of small macropores structure which renders it more effective for the absorption of gas/vapour and for the removal of color and odour of compounds. The activated carbon is extensively used in the refining and bleaching of vegetable oils and chemical solutions water purification, recovery of solvents and other vapours, recovery of gold, in gas masks for protection against toxic gases, in filters for providing adequate protection against war gases/nuclear fall outs, etc. Steam activation and chemical activation are the two commonly used processes for the manufacture of activated carbon. However coconut shell based activated carbon units are adopting the steam activation process to produce good quality activated carbon. Having originated at some place in South East Asia, the Coconut Shell Charcoal The shell character is the raw material required for the manufacture of activated carbon. The shell charcoal is manufactured by burning shells of fully matured nuts in limited supply of air sufficient only for carbonization, but not for complete destruction. The output of charcoal in the traditional pith method is just below 30 per cent of the weight of the original shells. In India the average output in the traditional method has been found to be 36 kg of charcoal from 1000 whole shells or about 30,000 whole shells yield 1 tonne of charcoal. Sometimes, especially when the processing is defective, the

aq 5" output is still lower and nearly 50,000 shells are required to produce one tonne of charcoal. To obtain good quality charcoal, full dried, clean, mature shells should be used. Now several modem methods are in vogue for the production of charcoal. In the modem waste heat recovery unit the heat generated by the burning of coconut shells is used for drying copra and shell charcoal is obtained as by-product. A simple and efficient method adopted for the production of charcoal on cottage scale is given below. Coconut by products in Ayurveda A Nut from south Sree Lanka was called Thenkai, Thengha. In Traditional indigeneous doctors vaidys used coconut, coconut oil, Tender coconut water, coconut water, coconut milk as medicines. (Narikelagandam, Nari Kelamrithan, Narikela lavanam) 50 to 300 years old coconut oil is even now preserved in christianc church and “Illanms of Hindu Namboodiri community to cure various. Skin diseases, cancer dental disease to cure plague. In Raja vallabha dictionary tender coconut is described as Komala Nalikeram. It is widely uses for as medicine for Typhoid, Pneumonia, and Measles and for urinary complaints and to for drug addicts patients’ patients, R.B.C Urine etc. Copra is effective medicine for B.complex deficiency, skoker’s cough, weer, hyper widely etc Utilization of Coconut products In these kilns, good quality coconut shells from mature nuts, dry and free from husk and of even size are interlocked and laid loosely in single or double rows in serrated brick hearths. In order to avoid excessive production of smoke when the chain of shells is first lit, some shells are ignited outside the kiln and brought in when they are burning fiercely the shells bum without smoke. The hot air heats uniformly the split helves of coconuts arranged with the kernel facing up, on suitable platforms. When the kernels show signs of detachment from the shells, the split halves are taken out and separated into shells and kernels. The kernels are then reloaded on the platforms and the process of drying continued till crisp copra is obtained. Total drying time ranging from 15 to 40 hours has been reported for different types of kilns. Whiter copra is obtained by using coconut shell charcoal instead of coconut shells as fuel. In recent times, several types of copra kilns for making white copra, perfectly free from blemishes of smoke have been patented. The “Chula” patent copra- drier is one such type. In this kiln any kind of fuel-coconut shells, husks, petioles, firewood, etc., is burnt in a fire-place. The hot gases pass though suitable flue pipes connected to chimney which permits the escape of smoke to the outside. Cold air is let in to pass over the hot flue pipes and the hot air is blown by means of a fan through a bed of split coconuts loaded in a drying chamber. The various types of driers I use are described and detailed sketch plans are provided for four of them, namely the Standard Ceylon Copra Kiln, the De Vapour Driers (both single and multiple), the Kukum Hot-air Drier and the New Zealand Representation Estate Copra Drier. Ball Copra Copra in the form of balls is mad from whole unsplit units. Fully ripe nuts, 12 to 14 months old, are harvested and thrown into the wooden upper floor of the store. They are frequently stirred and/or smoked till they are quite dry. The proper stage of drying is dertermined by shaking the nut when the detached kernel makes a rattling sound. After the rattling stage, the nuts are stored for some more time and then husked and shelled and suitably marketed. Commercial grades of ball copra are illustrated. The smoking is done by burning paddy husk, coconut husk, dry leaves or cheap firewood in the ground floor of the store. The entire process takes 8 to 12 months. Verghese et .al have shown that small sized nuts are best suited for making ball copra. Yield of Copra Thus to make a ton (1,016 kg) of copra, 6,222 nuts are required in Malabar and South Kanara 7,ooo in Godavari, 6,850 in Travancore-Cochin and 8000 in Mysore. It is reported (Report Marketing India 1943) that 4,800 nuts go to make a ton of copra in Ceylon while 6,250 and 4,500 nuts respectively are required in the West Indies and the Philippines. Uses Copra is used for edible purposes and for extracting coconut oil. Copra is eaten as such o mixed with other dry fruits. It is also used in the preparation of sweets and as a garnish in many dishes. Copra balls are used as religious offerings and on ceremonial occasions. Desiccated coconut Desiccated coconut is prepared from coconut by first removing the husk and shell, then parrying off the brown skin from the kernel and passing the white meat through cutting or shredding machines of various types to produce chips or threads of varying degrees of fineness. Desiccated coconut finds us in the preparation of confectionery, cakes, biscuits, pastry, puddings, etc. It is reported (Indian coconut 1951) that desiccated coconut is marketed in the U.S.A under several trade names such as “macaroon”, “thread” and “ribbon”. In Ceylon 6,900 nuts will yield one ton of desiccated coconut (Ceylon Coconut Quart 1952) “Tend-O-nut “ “Tend-O-nut “is the trade name given to desiccated coconut subjected to a tenderizing and sweetening process. “Tend-O-nut “is now manufactured in Cyelon (Indian Coconut 1951). “Tend-O-nut “contains 60 per cent pure coconut, 38 per cent sugar and 2 per cent moisture. It is manufactured in about seven pleasant colours: rose, pink, brown, green, yellow, maroon and mauve. “Tend-O-nut “ is a delicious center in sweets and used for sprinkling or decorating cakes or as cake filling. It can eat without further preparation, mixed with warm milk, tea or water just enough to soften it.

Coconut oil Though copra is put to some edible use, the main proportion of the copra produced in the different countries is milled for oil. In India, 80 per cent of the copra produced is so utilized. . Coconut oil produced in India is acclaimed as unique in copra quality and known for its good aroma and flavor. Galaxies of government, co-operative and private agencies are indulged in primary processing and marketing. Hundreds of renounced and well established private firms are engaged in manufacturing and marketing of various branded coconut products and oil around the world. Existence of diverse agro climatic zones, a plethora of coconut varities having nut characteristics, a vast army of trained human resources for manufacture of various coconut based products and an array of technical know how coupled with the services of world renounced agronomists is an added advantage to India. Easy and economic availability of research assistance supported by reputed research organizations such as CSIR, ICAR and DRDO. Coconut cultivation endowed entitlements to nations with high potential of overseas trade and precious earnings in International market and great stake for agro industries and thrust for rural community development in a country like India. The coconut industry and the coconut growing culture are intimately associated with the economic, domestic life and religious belief of the people from the pretty past. Suggestions: With a view to encouraging speedy development of coconut processing industry in India, the following suggestions are recommended. (1) A coconut Technology Development Centre (CTDC) has to be established for extending techno economic support to the coconut processing sector for its modernization and integrated development. (2) TheCTDC shall have the mandate ot promote, sponsored, support or undertake market research and market promotion activities, promote processing industries in the fields by product utilization through equity participation and to provide techno - economic support to entrepreneurs. (3) The coconut farmers in the major producing centers have to be organized under the aegis of growers’ co-operatives and appropriate infrastructure facilities created for facilitating primary processing of coconut at the grass root level. The primary processing may cover copra making, oil milling and coir fibre manufacture and the related processing activities. (4) The coconut based economy can be stabilized only when such depended on a single product is minimized through the promotion of farms household and community level processing of the multiple products and by products of the coconut farm. (5) In the post WTO regime where coconut industry may not be able to survive and over come challenges of other major players in the I.N. market unless the production cost efficiency is attained and the productivity increased. This will definitely combat the existing situation of confirming to the traditional processing technologies in coconut.