A total of 38 coconut producer companies have been formed, with Kerala accounting for 23, Tamil Nadu and Karnataka six each and Andhra Pradesh three

Ravaged by rampant pest attacks and violently fluctuating prices, Kerala’s coconut farmers are parables on agrarian distress in the country. But their lot may be changing with a set of new initiatives by Coconut Development Board that include tapping and selling neera and value-added products from the unfermented, sweet sap from coconut flowers.
The new initiative has been aided by a move by the State of Kerala to free neera from within the purview of the more than a hundred-years-old excise rules, which govern production and sale of intoxicating drinks, including toddy, the fermented sap from coconut flowers.
Beginning 2012, coconut farmers have been organised into Coconut Producers’ Societies (CPSs). Each society consists of 40 to 100 farmers and each farmer contributing at least 10 palms for tapping neera as well as nuts.
At the next level, the Societies, numbering between 25 and 40 have joined together to form Coconut Producers’ Federations registered under the Charitable Societies Act. The Federations have joined hands to form Coconut Producer Companies in which shareholders are Coconut Producer Societies.
A total of 38 coconut producer companies have been formed in the country, with Kerala accounting for 23, Tamil Nadu and Karnataka six each and Andhra Pradesh three, said a Coconut Development Board official.
In Palakkad district, 458 CPSs have together formed the Palakkad Coconut Producer Company, which has established high-tech coconut driers, a neera tapping unit and 30 Coconut Point, shops that sell its own brand Palm Fresh coconut oil, value-added products from coconuts, safe-to-eat vegetables and rice produced by the member farmers.
The initial capital for the project accrued from individual farmers. Each farmer pays Rs.100 per tree as his equity contribution. Of this, Rs.20 is paid upfront while the rest of the amount is deducted from the collection of nuts and neera from the tree by the producer company.
The total capital mobilisation is Rs.5 crore and the Palakkad company has mobilised Rs.2.5 crore so far. The target will be achieved by the end of this year, says Vinod Kumar, CEO.
Shahjahan Kanjiravilayil of Kaippuzha Coconut Producer Company in Kollam district says that farmers, numbering about 20,000 under the company, are paid between Rs.9 and 10 lakh per month since operations began at the end of February this year.
Coconut farmers’ income had nearly doubled after neera tapping was launched, he said pointing out that the company was turning out 15,000 bottles (200 ml each) per day at its plant. The demand is going up with the company tying up with institutions like the Sree Chithira Institute of Medical Sciences for large volume of supplies.
The Palakkad company ended its first financial year between June 2013 and April 2014 with a profit of Rs.4.5 lakh and declared four per cent dividend. The dividend has been paid as redeemable coupons, which the farmer members can use for purchases at the sales outlets owned by the company.
The member farmers also received a production bonus of Rs.2 per kg of raw, husked nuts. The unaudited results for 2014-15 point to a profit of Rs.4 lakh. The company exported, mostly to Europe, 10 tonnes of palm honey and two tonnes of sugar during 2014-15. However, weather variations and a 40 per cent rain deficit is likely to hit neera production during the current year.
The company, which has availed loans to the tune of Rs.7 crore from different institutions for setting up various facilities, will establish a neera bottling plant to boost sales. It will also establish 70 moreCoconut Point sales outlets to cut out middlemen who charge up to 40 per cent in commission.
Chairman of Coconut Development Board T. K. Jose said that the major challenge before neera business was a shortage of tapping technicians. Money and technology are no longer limiting factors, he said.

Source: The Hindu