Many desiccated coconut powder factories have shut down and owners are struggling to pay the interest on loans, reported The Hindu, datelined Karnataka, April 20. Coconut prices may have dropped 38% from the recent highs of Rs.40 (USD0.65) to around Rs.25 (USD0.37), but desiccated coconut powder factories in Tumakuru district are yet to recover from this price shock.
At the height of the crisis, the report said, around 90 desiccated coconut powder producing factories in Tumakuru district shut shop leaving around 20,000 workers unemployed. Many are slowly resuming production, but not at previous levels. Others are waiting to see if prices stabilize before resuming operations.
H.R. Annadana Rangaiah, president of Tiptur taluk Desiccated Coconut Powder Manufacturers’ Association, said that he had to close his factory due to the sudden rise in price of coconuts. “I will incur losses if I continue to produce desiccated coconut powder in the absence of demand,” he said adding that part of the problem was caused by adulterated desiccated coconut powder. “We cannot compete with adulterated desiccated coconut powder and, hence, many of us closed down our factories”.
The COCOMMUNITY, VOL. XLVIII NO. 6, 1 June 2018