Tumakuru: The once spiralling copra prices, which had reached record highs just a few weeks ago, are now witnessing a steady decline, sparking concern among farmers across the region. The downward trend in the Tiptur APMC market has left growers worried about the potential for further price drops.
On Thursday, the maximum copra price at Tiptur APMC slipped to Rs 26,500 per quintal. The minimum price stood at Rs 24,000, while the modal price settled at Rs 25,500. The market received 1,816 quintals (4,224 bags) of copra during the day’s auction.
The decline has been sharp. Within a week, prices have dropped by Rs 1,606 per quintal. Compared to Monday’s auction alone, Thursday’s rates saw a Rs 1,000 reduction. Over the past month, copra prices have nosedived by Rs 5,000 per quintal.
In June, copra touched an all-time high of Rs 31,606 per quintal following a sustained price rally that began in March. By mid-July, prices were stabilising between Rs 28,000 and Rs 30,000, with traders, brokers, and farmers anticipating a plateau around Rs 28,000.
However, from mid-July onward, prices have taken a consistent hit, disrupting earlier forecasts. As of early August, no signs of a rebound have emerged. Market observers believe that prices may now stabilise around Rs 25,000 per quintal, with further drops considered unlikely in the immediate term.
The earlier spike in prices was attributed to robust demand and limited supply, which fuelled a price rally from March through June. The current correction, however, is viewed with growing concern by farmers who fear diminishing returns on their produce.
“Prices have already corrected significantly,” said a market trader. “There may be minor fluctuations ahead, but a sharp decline from current levels appears unlikely.”
Demand from north Indian states drops
The rise in copra prices has led to a drop in demand from northern Indian states. Traders in those regions have reduced their purchases, causing a decline in copra procurement.
Meanwhile, the coconut harvesting season has begun in Tamil Nadu and Kerala, and fresh coconuts are arriving in the market. Due to the high cost of copra, producers are buying fresh coconuts at lower prices from Tamil Nadu and Kerala, and extracting coconut oil directly from them. This has resulted in reduced usage of copra from the state for oil production, contributing to the price decline, market sources said.
Yogeesh, a copra trader from Tiptur, said, “The Tiptur copra market largely depends on the oil industry. However, our farmers are not processing copra efficiently. Natural factors also cause variations in quality. Both copra and coconut oil markets are dominated by large companies, which influence price fluctuations."