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Economics of Coconut Products-An Analytical Study

Author(s) : Dr. Gigi Elias

Volume & Issue : VOLUME 5 / 2017 , ISSUE 2

Page(s) : 39


The present study on the economics of coconut products is very pertinent, considering the importance of coconut production in terms of its contribution to Kerala‟s SDP and providing livelihoods to lakhs of people directly and indirectly. The study makes an attempt to understand the economic importance of coconut products and the challenges the Indian coconut products are facing from similar coconut producing countries in the world. Stability in the prices of coconut products is necessary for the development of the crop as it involves large investment and long germination period. Forecasting the prices of coconut products may reduce the risk involved in the cultivation of coconut by supplying additional information about possible outcome.


study on the economics of coconut products


The price fluctuations in coconut products severely
influence the cultivation of coconut. During 1999-
2001, there was a sharp decline in the prices of
coconuts by 75 percentage. To make coconut
cultivation remunerative it is essential to diversify.
For diversification it is essential to understand the
economics behind diversification. The prices should
be attractive to farmers so that they continue to
invest and undertake coconut farming for their
prospective growth. For the product based industry
the prices should be remunerative for its survival.
Even for diversified coconut products price
fluctuations due to international forces and
substitutes are very important. In this context, it is
essential to analyse the price fluctuations of coconut
products so as to arrive at policy suggestions.

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