Coconut prices surge to Rs 80 amid rising freight costs

Even as the rise in the price of a coconut, from Rs 70 to Rs 80 over the past week, has evoked sharp reactions from consumers, wholesalers and vendors have justified the increase, citing the highly labour-intensive nature of the trade and steep freight charges.

The wholesale price of a coconut has increased from Rs 50-55 per piece at the Vallah market, leading to the retail price touching Rs 80.

A vendor, Manjhi Ram, said they fetch fresh coconuts daily from the wholesale market and sell them at roadside stalls across the city. Throughout the day, they stand under the scorching sun waiting for customers. Cutting each coconut requires precision, hard work and carries the risk of injury. “This is the reason most people involved in this profession are from Bihar,” he said.

He lamented that people fail to understand the effort involved. Consumers complain about high prices but overlook the gruelling nature of the job, especially with the rising heat over the past week. Vendors not only transport fresh coconuts but also cut through the hard shell using large knives.

Kanwaljeet Singh Pahwa, a wholesale fruit dealer, said coconuts are currently being sourced from Karnataka. Each piece typically weighs over 1 kg and has high water content, making it popular for its taste.

He explained that transporting coconuts from Mysuru to Amritsar costs around Rs 1.25 lakh per truck due to the long distance. With each coconut weighing over 1 kg, the freight cost alone comes to nearly Rs 10 per piece.

Additionally, loading and unloading charges are incurred multiple times, with each coconut being counted during loading in Mysuru and again during unloading at the Vallah market in Amritsar.

With the onset of the monsoon, coconuts will start arriving from Gujarat, which is expected to reduce prices. This is due to the shorter supply route between Gujarat and Amritsar compared to Karnataka. Currently, about three truckloads of coconuts arrive daily from Karnataka.

He added that since the trade is highly labour-intensive, most vendors come from economically weaker regions of Bihar. He also recalled that coconuts began arriving in the local market over 25 years ago, when about three tonnes were brought daily by train from West Bengal. At that time, demand was negligible.

However, demand increased significantly after the Covid-19 pandemic, as doctors began recommending coconut consumption.