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CHAPTER-VI MARKETING of COCONUT and RUBBER Coconut

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CHAPTER-VI MARKETING of COCONUT and RUBBER Coconut CHAPTER-VI MARKETING OF COCONUT AND RUBBER Coconut marketing in India and Kerala 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 Government of Kerala. 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 coconut oil 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 copra 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.
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