Why Have Coconut Prices in Chennai Doubled to Rs 80 per kg?
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Synopsis
The rise in coconut prices in Chennai has caught everyone's attention, soaring to Rs 80 per kg due to supply shortages. This article explores the reasons behind this surge, the impact on local businesses, and calls for government intervention to stabilize prices.
Key Takeaways
- Coconut prices in Chennai have doubled, now reaching Rs 80 per kg.
- Supply issues stem from Cyclone Gaja and crop diseases.
- Local eateries are adjusting recipes to cope with higher costs.
- Farmers are calling for government intervention to stabilize prices.
- Tender coconuts are also seeing price increases.
Chennai, June 29 (NationPress) Coconut prices have dramatically increased throughout Chennai, with retail rates reaching Rs 80 per kg due to a significant decline in supply coupled with high demand. In the wholesale market, coconuts are trading between Rs 58 and Rs 60 per kg, while semi-wholesale prices are noted to be between Rs 65 and Rs 70 per kg, as stated by S.S. Muthukumar, President of the Koyambedu Semi-Wholesalers Association.
The primary sources of Chennai’s coconut supply include Pollachi, Cuddalore, Puducherry, Thanjavur, and Udumalpet.
However, the situation has been exacerbated following Cyclone Gaja in 2020, which caused extensive damage to coconut plantations across Tamil Nadu's coastline.
As per the state Agriculture Department, the cyclone impacted nearly 45,117 hectares of coconut groves and resulted in damage to around 63 lakh coconut trees across eight districts.
“The government must step in to regulate prices. If not, we might see an additional rise of Rs 5 to 10 in city markets. Chennai requires over three lakh coconuts daily,” stated coconut farmer Saravanakumar.
N. Thangavel, a farmer from Pollachi, explained that the decline in production is not solely due to cyclone damage but also due to the rising prevalence of crop diseases such as leaf blight and stem bleeding, which have become rampant in Tamil Nadu over the past two years.
These rising prices have also impacted small restaurants across Chennai, many of which have begun substituting coconut chutneys with mint chutneys to control costs.
Tender coconuts have also seen a price hike, currently retailing for Rs 50 to 60 each in parts of Chennai.
Muthuraman, a wholesale dealer, mentioned that supply from Pattukkottai and Thanjavur has decreased since Cyclone Gaja, forcing traders to source from Puducherry and Cuddalore, where prices are elevated.
Dealers have noted that tender coconut procurement costs have increased by at least Rs 5 compared to last year, with transportation adding another Rs 3 per coconut. To ensure a consistent supply, sellers often stockpile coconuts in large quantities.
“Tender coconuts are always sought after as they are natural and free from additives,” remarked retailer T. Raji.
Another seller, P.M. Murugan, added, “Despite daily demand fluctuations, sales remain stable because customers are confident in their quality.”
Point of View
It's crucial to observe the implications of rising coconut prices on both consumers and producers. The situation calls for immediate attention to agricultural policies and disaster recovery efforts to prevent further economic strain on local communities.
NationPress
29/06/2025
Frequently Asked Questions
What caused the increase in coconut prices in Chennai?
The surge in coconut prices in Chennai is primarily due to low supply following Cyclone Gaja, which caused significant damage to coconut plantations, compounded by increasing crop diseases like leaf blight and stem bleeding.
How much do coconuts cost currently in wholesale markets?
Currently, coconuts are being sold in the wholesale market for Rs 58 to Rs 60 per kg, with semi-wholesale rates ranging from Rs 65 to Rs 70 per kg.
What are local eateries doing in response to rising coconut prices?
Many small eateries are replacing coconut chutneys with mint chutneys to manage costs due to the rising prices of coconuts.
How has Cyclone Gaja affected coconut production?
Cyclone Gaja has devastated approximately 45,117 hectares of coconut groves and damaged around 63 lakh coconut trees, significantly impacting supply.
Are there any calls for government intervention regarding coconut prices?
Yes, local farmers have urged the government to intervene and regulate prices to prevent further hikes and stabilize the market.
