While actual quantity of cheap palmoil that has found way to the southern states cannot be ascertained, but adulteration of cheap palm oil with costlier and tastier coconut oil has been rampant in the southern states as well.

The upshot? Plunging prices for coconut oil that is giving a harrowing time, for the coconut growers and Coconut Oil Merchants Association (COMA). Prices of both copra and coconut oil have dipped to their recent low levels. And despite higher Minimum Support Prices (MSP), the government is hardly doing anything when the open market prices are low. Till last year, the price of coconut oil was between Rs 60-65 a kg. The slide started with the coming in of palm oil into the State. Palm oil then was available at Rs 35 a kg. Now it costs a mere Rs 23 per kg, still much less than coconut oil.

Currently, coconut oil price is round Rs 27 per kg against international price of Rs 18 per kg, including the freight charges. Little wonder, therefore, the farmers want the state authorities to take some price supportive action. But with no action seen in this regard, there have been severe protests against the arrival of shiploads of cheap palmoil in the southern states as well.

Coconut growers feel the situation warrants state level efforts to stem the price slide. But by mid-2001, all quantitative restrictions (QRs) will go forcing all concerned to compete globally. Coconut growers and merchants fear that once QRs go, import of cheap coconut oil will become more easier and there will be surge of imported commodity. All this would spell disaster in the coconut growing region of the country. A way out, Cochin Oil Merchants Association (COMA) feel, is to permit futures trade in the coconut oil. In the times of QRs going within next two years, efforts at having a minimum support price (MSP) mechanism will serve no purpose. Already, the Centre had fixed an MSP of Rs 3,200 per quintal for copra. However, in the open market, the price of copra is only Rs 2,100. Amidst this, the intermediaries have been making a neat pile. And attempts at getting the MSP raised to Rs 4,000 would mean nothing once the QRs go.

It is against this backdrop that there is strong resentment from coconut farmers to the visiting officials of the Agriculture Cost and Price Commission (ACPC). The commission members have confined their visit to the State capital while the Coconut Development Board (CDB) and the merchants association is based in Kochi. Ask the growers: "Who is this Commission going to talk to? Is it the State Government which has done little to safeguard our interests and is now demanding that MSP be raised to Rs 4,000?" They see in this a sinister ploy. The State Government has done little to stop the flooding of palm oil on the State.

As regards the move to introducing tender coconuts in State hotels, growers say that even this will have to be brought in from neighbouring states, where there are a variety of short hybrid plants. Efforts were made earlier for the manufacture of different byproducts. But after getting the Governemnt subsidy, these companies have done the vanishing trick, merchants say.