How Have Coconut Shells Transformed into a Lucrative Commodity in Kerala?
Click to start listening
Synopsis
Coconut shells in Kerala, once considered waste, are now in high demand, achieving record prices due to industrial needs. This transformation creates a lucrative market for farmers and traders, raising significant economic and social implications, especially as the Onam festival approaches.
Key Takeaways
- Coconut shells are now a valuable commodity in Kerala.
- Prices have surged due to industrial demand.
- Households are storing shells for sale.
- The price increase affects household budgets.
- Government is offering subsidies for coconut oil.
Kottayam, Aug 18 (NationPress) Once seen as refuse, coconut shells in Kerala have now become a highly sought-after item, with prices soaring to unprecedented levels due to escalating industrial demand from both domestic and international markets. The price of coconut shells has experienced a remarkable increase, reaching a peak of Rs 35 per kg in certain regions of Kerala over recent months.
Interestingly, just a year prior, coconuts in the state were priced at Rs 30-40 per kg (currently Rs 80-90), while their shells are now fetching up to Rs 35 in many areas.
The value surged from a mere Rs 5 per kg at the start of this year, creating a profitable marketplace for coconut farmers and traders alike.
Industry players have confirmed that this price escalation is primarily driven by a strong demand from both local and foreign sectors.
Subair, a merchant in Kollam, southern Kerala, stated that he sells coconut shells to merchants from Tamil Nadu, who subsequently export them to China and Taiwan, noting that prices in Kollam hit Rs 33.
According to him, these shells are utilized in the production of activated carbon for purposes like water purification, cosmetics, and various industrial uses.
Another trader, Murugan from Erattupetta in Kottayam, remarked that the surge in coconut shell prices up to Rs 35 a kg has elevated it to a high-value product.
Murugan collects shells locally and sells them to traders in Tamil Nadu and Karnataka.
In response to the recent price increase, households in Kerala have started hoarding coconut shells to sell to local traders at better rates.
This sudden uptick in value has transformed coconut shells into a 'gold price' commodity, prompting small-scale entrepreneurs to engage in online collection ventures.
The rapid increase in the prices of coconuts and coconut oil, both staples in Keralite households, has disrupted family budgets statewide.
Currently, a kilogram of coconut is priced around Rs 80-90, while coconut oil costs around Rs 400-500 per kg.
As the Onam festival approaches, this price surge has emerged as a significant political topic, leading the government to announce subsidized sales of coconut oil to alleviate consumer burdens.
Point of View
The surge in coconut shell prices in Kerala reflects broader trends in agricultural economics and market dynamics. It's essential to examine how such shifts impact not only local traders but also the livelihoods of farmers and families dependent on these commodities, especially amidst rising costs of essential goods.
NationPress
08/10/2025
Frequently Asked Questions
Why have coconut shell prices increased in Kerala?
The prices of coconut shells have risen due to heightened industrial demand both domestically and internationally, particularly for uses in activated carbon production.
What are the current prices for coconuts and coconut oil in Kerala?
Currently, coconuts are priced at approximately Rs 80-90 per kg, while coconut oil costs between Rs 400-500 per kg.
How are traders benefiting from this price surge?
Traders are capitalizing on the increased demand by sourcing coconut shells locally and selling them at higher rates to traders in Tamil Nadu and beyond.
What impact does this have on households in Kerala?
The rising costs of coconuts and coconut oil have strained household budgets, prompting families to adapt by storing coconut shells for sale.
What steps is the government taking to address these price increases?
In light of the price surges, the government has announced subsidized sales of coconut oil to help relieve the financial burden on consumers.
