The Coconut Development Board has called upon existing and new exporters to utilise the opportunity allowing coconut oil exports through major ports.
If coconut oil is exported through all-weather ports of the neighbouring States, India can grab a good portion of coconut oil demand in the Gulf countries and it will help improve prices, senior Board officials said here.
The demand in the West Asia has been peaking and this market has been serviced by coconut oil from the Philippines and Sri Lanka. Kochi is the only port currently allowed to export coconut oil. However, the Union Government has now permitted exports from all 13 EDI ports and Land Custom Stations through a gazetted notification.
Export push
The Government decision, according to officials, is expected to help the coconut oil industry which is reeling under price fall. The officials pointed out that the thinning of stocks in the adjoining States would create a price push which would percolate to the coconut sector bringing in higher prices for the nuts.
The Board has also plans to hike the exports during the current oil year to touch 1,50,000 tonnes, in which Kerala oil companies should contribute at least 50,000 tonnes and other States led by Tamil Nadu should contribute 1 lakh tonnes.
India which was predominant coconut oil producing country stands eight in the list of coconut oil exports after Philippines, Indonesia, Malaysia, Papua New Guinea, Netherlands, United States, Fiji . The country’s exports were just 0.33 per cent (8,441 tonnes) of the total 25 lakh tonnes of exports.
According to officials, coconuts and coconut oil industry has been reeling under heavy fall in prices due to slackness in demand. Taking out of the situation, the Board has conceived a three pronged strategy to address the problems that hit the industry.
With the availability of export benefit of 2 per cent duty drawback, the Board was of the view that exporters around 500 who have registered under Coconut Product exporters’ category with CDB could easily find external markets.
This would not only ameliorate the problems of the farmers and enable entry of new entrepreneurs to manufacture value added products, the officials added.