Coconut exports from Pollachi, Tamil Nadu’s largest coconut-producing region, are showing signs of recovery as geopolitical tensions in West Asia ease, with fresh demand from Gulf countries reviving overseas shipments after nearly three months of disruption.
Export enquiries from key Gulf markets have resumed, bringing relief to growers and exporters who were hit hard by the prolonged slowdown. Pollachi, which exports a significant share of its coconuts to Gulf nations through Kochi Port, had witnessed shipments come to an almost complete halt during the regional conflict.
While export activity has restarted, the industry continues to grapple with elevated freight costs. Although shipping rates have eased from the peak levels seen during the conflict, they remain significantly higher than normal, affecting exporters’ profitability.
The disruption had also resulted in delays in cargo movement, causing several consignments to deteriorate before reaching their destinations and leading to substantial financial losses for exporters.
Industry stakeholders expect exports to gradually return to pre-conflict levels over the coming weeks as overseas enquiries continue to strengthen. Before the disruption, exporters from the Pollachi region shipped several containers of coconuts to Gulf countries daily via Kochi Port.
The prolonged suspension of exports created an oversupply in the domestic market, leading to a sharp decline in coconut prices. Wholesale prices have fallen to around ₹40,000 per tonne, compared with nearly ₹65,000 per tonne during the corresponding period last year.
The price decline has been further intensified by a bumper harvest, which has increased arrivals in the market. However, labour shortages have prevented prices from falling even further, as the lack of migrant workers has disrupted harvesting and de-husking operations, slowing the movement of coconuts to markets.
Farmers expect higher production to continue for another two months before the harvesting season tapers off. At the same time, concerns are growing over next year’s crop due to below-normal rainfall and emerging drought-like conditions, which could reduce production and eventually drive prices higher.
Water scarcity has also become an immediate concern, with many farmers relying on tanker water to irrigate coconut plantations and protect trees from prolonged dry conditions. Despite these challenges, growers and exporters remain optimistic that the revival in Gulf-bound exports will help restore stability to the coconut market in the months ahead.