Price Behaviour of Coconut and Coconut Products in Markets of Kerala: An Economic Analysis

Abstract

The present study examined the price behaviour of coconut and coconut products, namely copra and coconut oil, in Kerala in the pre- and post-liberalisation periods. The overall price of all the products showed an increasing trend and variability over the years. The seasonal and cyclical nature of coconut production was evident in both periods, with coconut prices showing pronounced irregular variations compared to coconut oil and copra. The study found that the intra-annual volatilities in the prices of copra and coconut increased, while it decreased for coconut oil. Also, after the trade reforms of 1995, there was an overall decrease in the instability of prices. Price instability can be effectively managed as well as reduced, not only by increasing the production of coconut but also by diversifying it into different products. The provision and use of timely market intelligence would aid the farmers in overcoming the implications of price fluctuations in coconut.