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India's Coconut and Coir Economy

Copra and Coconut Oil

How coconut flesh is dried into copra and crushed for oil, the MSP for copra, and how palm oil imports affect coconut prices.

Copra is dried coconut flesh.

Process

Coconuts are split and dried in the sun or dryers, then crushed for oil.

Coconut oil

Used for cooking in Kerala and for hair and cosmetics across India.

MSP

The government sets an MSP for copra, with NAFED buying when prices fall.

Price competition

Cheap imported palm oil competes with coconut oil, pulling prices down.

Brands

Parachute (Marico) is a famous coconut oil brand.

Price swings

Copra prices swing with harvests and edible oil markets.

The copra dryer

A farmer dries coconut halves in the sun for a week before selling copra to an oil mill.

Thinking coconut oil prices are independent

Palm oil imports affect them.

Key takeaways
  • Copra is dried coconut flesh.
  • It's crushed for oil.
  • Copra has an MSP.
  • Palm oil competes.
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