The Hindu Business Line : Copra buys put on hold

PENDING the Union Government's clearance to the scheme, copra procurement has been put on hold for some time now. However, copra traders and farmers seem undeterred by this development as they are able to push the produce in the open market.

Market sources told Business Line that the open market rate for copra was higher at Rs 34 a kg compared to the rate offered by the Government. Thanks to the low nut yield, there is a huge demand for copra and the rates have moved up in the open market.

This is contrary to the situation that prevailed in the 2001-02 fiscal when the Government fixed the rate at Rs 33 a kg, while it was quoting at a low of Rs 25 a kg in the open market. Despite the higher rate, the co-operative societies are understood to have picked up stocks for a brief spell of about 3-4 months.

The Government did not clear the proposal up to June for the current year, and when it did, the rates were found to be lower than the open market rate. The proposal has since been put on hold.

Traders state that they are able to push the stock and realise cash almost immediately. Society sources, however, maintain that the proposal awaited Government's nod and they had therefore suspended procurement.

According to sources, copra procurement in this district plunged to 2359.08 tonnes in 2001-02 fiscal as against the 30000-odd tonnes procured during the earlier year. Sources, however, justify the dip stating that the procurement was only for about 4 months. For the current fiscal, a further decline in Government procurement cannot be ruled out.

Market sources say that the Government had fixed stringent guidelines for enrolment and procurement, whereas it was far easier to route it in the open market for a better rate. They have ruled out a further hike in rate in the open market despite a sharp dip in the yield of nuts.

On the one hand, the coconut yield has fallen sharply because of the lack of rains and acute water shortage in the Pollachi belt, while on the other, not many farmers take to copra production for want of infrastructure.

There are 5 copra procurement centres in Coimbatore district - at Pollachi, Anamallais, Udumalpet, Palani and Coimbatore. Fifty per cent of the production is from Pollachi and Anamallais centres.

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