PROBLEMS OF MARKETING PRACTICES OF COCONUT PRODUCTS IN THANJAVUR DISTRICT, TAMILNADU

Transcription

1 PROBLEMS OF MARKETING PRACTICES OF COCONUT PRODUCTS IN THANJAVUR DISTRICT, TAMILNADU R.H.BARIN BANU Ph.D., Research Scholar, Department of Commerce, Government Arts College (A) Kumbakonam, Thanjavur District Dr.S.PALANIVEL Assistant Professor and Research Advisor, Department of Commerce, Government Arts College (A) Kumbakonam, Thanjavur District ABSTRACT Vast growth opportunities remain for the coconut industry, but the marketing strategy needs a reorientation to suit to emerging trend. Awakening and alertness on diversification of coconut, with a motive to recapture the market have to be provided priority. The best option with vast growth opportunities for product diversification and value addition exists.this article highlights Problems of Marketing Practices of Coconut Products in Thanjavur district, Tamilnadu. KEY WORDS Coconut, Coconut Processing, Marketing of Coconut, Marketing Efficiency INTRODUCTION Coconut is considered to be the most important and useful tree among the tropical palms which gives coconut water, kernel, oilcake for cattle etc. It has been in cultivation in India from time immemorial. It perhaps yields more products of use to mankind than any other tree. Each and every part of the coconut palm is used in India. Since it is one of the leading commodities in agricultural 250

2 exports, the production programme of the crop is of critical importance in improving the efficient use of resources. The cost of production and net return obtained per unit, would determine the profitability of the crop. Coconut is an important tree crop with diverse end-uses, grown in many states of India. In India, coconut is grown in an area of 1.90 million hectare, producing million nuts with a per hectare productivity of 7747 nuts. Kerala s share in area as well as production of coconut in the country is declining over time Coconut contributes to more than rupees 83,000 million to the country s GDP and about 6 per cent to the edible oil pool. Similarly, the industry helps to earn foreign exchange to the tune of ` 13,000 million per annum by exporting coconut and coconut products. About 10 million people are dependent on coconut farming and its allied activities. Besides, coconut is a perennial source for raw materials to a number of other industries like oil milling, coir and coir based industries. Much potential exists for shell charcoal, shell powder, coconut milk powder and so on. Coconut processing and allied industries provides continuous employment to nearly 8 lakhs workers of which 80 per cent are women folk. The production of coconut in India during stood at million nuts and 8303 nuts per hectare, the area of coconut decreased by 0.45 percentages, whereas the production and productivity increased to 6.69 and 7.18 percentages respectively. In Sanskrit the coconut palm is called Kalpa Vriksha, which means the tree which provides all the necessities of life. Man can use every part of the coconut. The sweet cake can be eaten raw or used in most cooking recipes. A single coconut has as much protein as a quarter pound of beefsteak. Copra, the dried meat of the kernels, when crushed is the source of coconut oil. The husk, known as coir, is short, coarse, elastic fibers used to make an excellent thatch roofing material for houses. This very tree is also an excellent producer of charcoal which is derived from the shells, and is used not only as a cooking fuel, but also in the production of gas masks and air filters. In India, coconut is cultivated mainly in the costal track of Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Orissa, West Bengal, Pondicherry, and Maharashtra and in the islands of Lakshadweep, Andaman and Nicobar. Of late, coconut cultivation has been introduced to suitable location in non-traditional states including Assam, Gujarat, Madhya Pradesh, Rajasthan, Bihar, Tripura, Manipur, and Arunachal Pradesh and in the hinterland regions of the coconut growing states. Coconut crops are susceptible to various disease and pest attack. The major pests to coconut in India and rhinoceros beetle, red palm weevil, leaf-eating caterpillar and rats and major disease are root wilt, Thanjavur wilt/ganoderma, tatipaka, but root, leaf root, stem bleeding and crown chocking. Of these, root wilt, prevalent in Kerala, is century old disease. Effective control measures are yet to be developed for root wilt disease in Kerala; Thanjavur wilt/ ganoderma disease in Tamil Nadu and Karnataka; and titapika disease in Andhra Pradesh. However, the disease can be kept under control by adopting the recommended of practices. COCONUT MARKETING IN TAMIL NADU Coconut (cocos nucifera) is one of the most important crops grown in the humid tropics. More than 11 million farmers, mostly smallholders with low income grow the palm in 90 countries. More than 80 per cent of the total world production comes from the Asia-pacific countries. Coconut prices in Tamil Nadu, the third largest coconut producing state in the country, are expected to rise by around per cent in the coming months due to short supply and festival demand. According to the latest report released by the Domestic & Export market Intelligence Cell (DMIC) attached to Tamil Nadu Agricultural University (TNAU), farm level price in Tamil Nadu would increase to Rs per nut during August- September and the price is likely to move up further to Rs Rs.6 per 11 nut in October- November. The price outlook has been given as per the survey conducted in Pollachi (Tamil Nadu), a major coconut market in the country. The demand- supply gap in the Indian coconut market has widened as coconut area in Kerala has been shrinking in the past few years, trade sources said. Kerala tops in coconut production in the country with an area under cultivation of 0.87 million hectare. COCONUT MARKETING IN THANJAVUR The state government has constructed a coconut marketing complex at Pattukkottai in Thanjavur district at a cost of Rs. 4 Crores. The complex incorporates a drying yard, rest room for farmers to stay, a godown, shops for farms to sell coconut, a quality control wing, an administrative block, canteen and parking spaces and emerged as a full- fledged marketing complex. The complex constructed on 20 acres of land at Ponnvarayankadu near Pattukkottai. The coconut marketing complex is a boon for the farmers of Thanjavur area. The Thanjavur district, coconut is cultivated on 68,000 acres by nearly 75,000 farmers. Two lakh farm laborers are also involved in coconut cultivation and production. The coconut farmers have been facing the problem of fluctuation in price for both the nut and copra, lack of facilities for converting the nut into copra and lack of storage facilities. The complex may help them in solving these problems. The complex provides a solar drier and machine drier facilities to the formers. The state government is procuring copra from the formers through Co-operatives. Pattukkottai Agriculture Produce Co-operative Sales Society is procuring copra from the farmers now. Identity cards have been issued to them. Now the farmers can sell their produce at the coconut marketing complex. USE OF COCONUT Major coconut production in the country primarily is in demand from consuming states for traditional products viz., matured nuts, tender coconut water, coconut oil, desiccated coconut, and oil cake and coir products. Nearly 90 per cent coconut production is directed for traditional use in domestic markets. The most important traditional commercial product traded in the country has been the coconut oil. Therefore, the demand and supply of this single coconut product determines the price of raw coconut. Moreover, the market share of coconut oil both in domestic and export market is declining due to tough competition, especially from palm and soybean oil prices. The cost of production of the traditional coconut products in the country has been so high that price-wise, the Indian coconut product is less competitive in global market. Its contribution to export market has therefore been in significant except the coir and coir product. 251

3 In India, product diversification of coconut was accelerated in late nineties due to sustained efforts made by Coconut Development Board by employing technology development through reputed Research Institutions in the country. The marketable value added products includes packed tender coconut water, coconut milk and milk based products, coconut chips, coconut based dairy products, desiccated coconut, coconut water based products, snowball-tender-coconut, vinegar, coir based products, coconut shell and coconut wood based products. Other products, which are being subjected to research and development, are organic food, oleo chemical, bio-diesel, bio-lubricant and cosmetics. MARKETING OF COCONUT: SYSTEMS AND PRACTICES Village traders, in the primary market, collect coconuts from the growers. Majority of the growers, prefer to sell their produce to the village traders because the village traders operate in the interior areas close to them, which facilitates personal contacts. Besides, they provide advance money to the growers, on condition, that the produce should be sold to them only. They assemble the produce purchased from the growers and pass them to the wholesalers in the assembling market. Primary village traders operate in the assembling market. The wholesalers purchase coconuts both from the village traders and growers. Growers, having more stock and good holding capacity, directly contact the wholesalers and sell their produce. They are in a position to take advantage of the better price offers. The wholesalers do not hold coconut stock for a long period. They transport the stock to the terminal market in Vadasery, as soon as they accumulate enough stock for a full trucker load. At Vadasery, the wholesalers deposit the coconut in the godown of commission agents and entrust the task of selling the coconuts to them. The commission agents make an advance of about 60 per cent to 80 per cent of the market value of the coconuts deposited by the wholesalers. The commission agents do not charge interest on this advance, if the sale is affected within 3 days. If the stock remains unsold for more than 3 days, interest is charged, for the excess period. The duration of the interest-free stocking period and rate of interest charged normally depend on the business relations that exist between them. The commission agents have to locate suitable buyers with price offers that are acceptable to their clients. The buyers are either exporters or secondary wholesalers. The commission agents get a commission for their services. MARKETING EFFICIENCY The marketing efficiency refers to the effectiveness or competence with which a market structure performs its designated function. Marketing efficiency is directly related to the cost involved in transporting goods from the producer to the consumer and the quantity of service offered. A reduction in marketing cost, without reduction in consumer satisfaction, indicates improvement in efficiency. A higher level of consumer satisfaction, at higher marketing cost, might have increased efficiency, if the additional satisfaction derived by consumer, outweighs the additional cost incurred on the marketing process. But a change that reduces cost as well as consumer satisfaction need not indicate increase in marketing efficiency. In the present study, the marketing efficiency of the different channels, has been studied using Shepherd s Method and Composite Index Method DECISION BEHAVIOUR Coconut is considered to be the most important and useful tree among the tropical palms. It has been in cultivation in India from time immemorial. It perhaps yields more products of use to mankind than any other tree. Each and every part of the coconut palm is used in India, in one way or other and the Classics of India have rightly eulogized it as Kalpavriksha owing to its multifarious uses of our daily life. Though it is evenly cultivated, the cultivators face many problems. Another important problem faced by the growers is connected with the sale of coconut. The coconut growers in the study area were left with two options while marketing their produce. The first option was selling coconut to the village traders and the second one was selling through wholesalers. The factors that influenced the growers to select a particular medium are analysed by making use of Garrett s Ranking Technique and the results are discussed below Problems faced by the Farmers in Coconut Cultivation Most of the farmers in the study area face many problems relating to the cultivation of coconut in their farms. They include Incidence of pests and diseases, High cost of input, Lack of irrigation, Shortage of tree climbers and Lack of scientific knowledge. Marketing of coconut like that of any other horticultural commodities, notionally has two aspects i.e. the marketing activity, in which sellers and buyers have mutual Coordination in each other s activities, where goods and services from producers move through certain channels by conscious application of marketing tools. The other aspect is the marketing promotional activity, which comprises of gathering information, data, Compilation, analysis, interpretation of the data and passing the resulted valid Information to farmers, traders, business organizations and other concerned agencies to facilitate marketing functions. The tools used for market promotional activities are marketing research, advertising and effective coordination between producers and consumers. While marketing promotional activities play supporting and strengthening role to the marketing activity, however, the later requires professional and commercial skill. Marketing of coconuts differs from that of other fresh fruits due to natural durability of coconuts, which are sold as fresh tender nuts as well as matured water nuts and dry nuts. Since coconut is mainly cultivated in Southern states namely Kerala, Karnataka, Tamil Nadu and Andhra Pradesh and nominally in coastal area of Maharashtra, Goa, Gujarat, Orissa and West Bengal etc., the Marketing practices followed are more or less similar in nature. It has been observed that they do not differ much except where the post harvest practices change on account of the form of the coconut and coconut products consumed in that area. Indirect mode of disposal of coconuts as a strategy is more popular and widely adopted by coconut farmers. This indicates that channels, intermediaries play a major role in both assembling and equalization functions in marketing of coconuts. Coconut farmers who depend on direct channel are those who have comparatively better financial base than other categories of farmers, provided with infrastructure facilities and nearness Coconut farmers have two channels for disposal of their coconuts. One is the direct channel and the other one, an indirect channel. Indirect channel is the most prominent channel adopted among coconut farmers. Direct channel is very simple while the indirect channel is very complex. Based on their mode of disposal of coconuts, four types of coconut farmers have been observed. 252

4 They include lesser farmer, opportune farmers and farmer adopting mixed practices. Nearly half of the coconut farmers in general and two third of marginal and small farmers in particular have been observed adopting leasing as the mode of disposal of their coconuts. The financial crises especially the need for money to redeem prior debts and to meet domestic expenses are the prime reasons for leasing coconut trees. The marginal as well as big coconut farmers with sound financial position are free from any such forces compelling them to lease coconut trees. Adoption of mixed practice for disposal of coconuts is found common among big farmers. Location differences of the farm and differences in age and productivity of coconut trees are the reasons attributed for following mixed practices of marketing by farmers. Absence of lease holders, low productivity as well as poor protection to trees in the farm, seasonal harvesting etc. are some of the factors forcing coconut farmers to adopt mixed marketing practices. Tender Coconut: The tender coconuts are disposed off by the farmers immediately after harvesting, without giving any kind of dressing or grading. It has been observed that tender coconuts Plate- are manually sorted out at the time of retail sale, where the husk of the tender coconut is chopped off with a sharp sickle shape knife to make an opening of about 1 inch diameter to facilitate directly drinking of water. Dehus king of tender coconut is very difficult due to high moisture content of the husk and delicate nature of immature shell. The discarded nuts are cut into halves before being disposed of by natural degradation. Tender coconuts are sent to market within a day or two after harvesting as there is no practice of storage for Tender Coconut Sale longer period. The tender coconuts are kept in shed on the farm till they are lifted by the wholesaler and/or retailer. The wholesalers and retailers store the tender coconuts only for a few day or week, since, the interval between the harvesting and consumption does not exceed more than 10 to 15 days, even at the distant places of consumption. Moreover, prolonged storage makes the tender coconut water insipid and hence is disposed off for consumption at the earliest possible. Tender coconuts have great demand in most of the towns and cities all over the country. Kolkata, Mumbai, Chennai, Bangalore and Delhi are the major consumer markets for tender coconuts. The tender coconuts are sorted out at the retailer level according to their size, since, bigger the coconut higher the price due to consumer preference and belief that it contain more quantity of coconut water. The assembling and distribution of tender coconut throughout the country is almost uniform and involve producer, contractor, itinerary merchants, wholesalers, retailers and hawkers. Farmers of the main coconut growing areas generally sells tender coconuts at the farm or gardens to itinerary merchant, wholesaler or retailer. At some places, the producers take the tender coconut to nearby mandi or market. The itinerary merchant and wholesaler after procuring either through commission agent or even directly, sell to the retailers. The retailer may directly sell to the consumer or through hawker to consumer. The buyers transport the tender coconut nuts to nearby town and market hatts. It has been observed that 90 per cent of the tender coconut production is handled by itinerary merchants. In Thanjavur traditionally coconuts are used for religious purpose and for consumption; hence, harvesting of fully matured nuts has been seldom practiced. In most cases, nuts of six to seven months, attaining maturity are harvested. The marketing channel in Thanjavur district includes village merchants, commission agents / wholesalers, dealers / re-traders, retailers and consumers. The major coconut oil trading centers are functional in the zones where more number of coconut oil mills is located. They are mainly at Kochi (Cochin), Trichur and Trivandrum in Kerala; Kankeyamand Vellakovil in Tamil Nadu and NorthKanara, Udupi and Mangalore in Karnataka. Though Kochi has been a terminal market, it has been reported that it has been experiencing decline in trading of coconut oil. The reasons attributed to this decline are highlabour wages, grading and transportation cost. The traders in Kochi who have the capacity, started to pool the minimum quantity up to 50 drums of coconut oil in short period of 11 days to economize the loading, grading and transportation cost. The small traders in Kochi, unable to adopt pooling practice, have been suffering from a low turnover. Further, the buyers have been forced to accept substandard coconut oil deliveries with more than permissible impurities, which the dealer have to purify at their own cost and in their establishment before dispatching it to upcountry buyers or industrial end users. PRICE ANALYSIS Coconut, being an agricultural, exportable and consumable commodity, its price always depends on the international demand and supply position. As production and supply of coconut in the world market are widely fluctuating, world prices of coconut have always fluctuated, which are reflected in the domestic prices also. Like other commodities, prices of coconut too have year-wise and season wise variations. Hence, an attempt has been made to analyse the variations in the price of coconut. Secular Trend The secular trend is the basic tendency of prices to increase or decrease over a period of time. It describes the pattern of behaviour which has characterized the series in the past. In the present study, the trend of time series of prices was worked out, with linear regression equation, since the prices exhibited linear relationship with time. Cyclical Variation A careful study of cyclical variation facilitates to face recession period and to reap the benefits during booms. In the present study, the cyclical variations in the annual prices of coconut were studied through Moving Average Method. The steps involved are shown below:- Step 1 dividing the actual average yearly price by trend price. Step 2 Computation of six yearly centered moving averages for the detrained data which formed cyclical variations. Seasonal Variation It is a variation, which occurs with some degree of regularity within a specific period of one year or shorter. This study is useful to take useful policy decisions regarding purchase, production, inventory control and the like. In the present study, the seasonal variations in the monthly average prices were studied for ten years, by applying the Moving Average Method. The steps involved are shown below:- 253

5 Step 1: Computation of 12 months moving averages, for monthly average price series of coconut. Step 2: Obtaining the percentage series of actual prices to moving average prices and arranging them by month. Step 3: Calculating median for each month and eventually arriving at the seasonal (monthly) indices through adjustment factor. Irregular Variations It is the irregular movement of prices, over a period of time due to random factors. In the present study, Cyclical-Irregular (CI) components were derived, by dividing the actual time series with trend element since seasonal element was absent in the annual price series. This Cyclical-Irregular (CI) component was again divided by Cyclical Component to estimate the irregular variation. Temporal Variation A study on temporal variation of prices would be useful in forecasting the price movements in future. This would, in turn, help the producers and traders in making effective decision in production and marketing of coconut, including storage. Kanyakumari is a major market for both domestic and international trade of coconut, in India. Moreover, this market has got the advantage of having good means of transportation in the form of, roads and railways. The price effect in Kanyakumari market will be reflected in all other markets. Therefore, Kanyakumari market was selected to study the temporal price variations of coconut. Secular Trend Secular Trend is the basic tendency of prices to increase or decrease over a period of time. The concept does not include short range oscillations in prices but the steady movements over a long time. Cyclical Variations Cyclical variations in coconut price refer to the recurrent up and down movements around secular trend levels, which have duration anywhere from 2 to 12 years. These cycles may or may not be periodic. This study is useful in framing suitable policies for stabilizing the price level. The cyclical variation in the prices of coconut is analyzed by using the average method. Irregular Variations Irregular Variation refers to such variations in the prices of coconut which do not repeat themselves in a definite pattern. Irregular variation in prices includes all types of variation other than the trend, seasonal and cyclical movements. Irregular variation in price is caused by certain special isolated occurrences such as sudden change in demand or rapid technological progress. By their nature, these movements are irregular and unpredictable. Seasonal Variation Coconut, being a rain-fed crop, is subject to seasonal variation in prices. Seasonal variation in the prices of coconut was observed within a year due to its characteristic supply. Though consumption is in small quantity, coconut is being used daily. Hence, there exists a regular demand throughout the year. But the supply varies with the season of production. The harvest of coconut is regular and usually once in 45 days. Only small quantities are stored by the growers beyond 90 days from the time of harvest. Hence, an analysis of seasonal variations in the price of coconut is pertinent. REVIEW OF PREVIOUS LITERATURE Satheesh Kumar (1994)" studied the efficiency of coconut marketing in Kerala through inter and intra market integration. He made use of secondary data of wholesale prices for 21 years commencing from 1969 for seven selected markets. The results of the analysis revealed a high degree of inter and intra market integration. However, relative differences existed in the efficiency of various coconut products of markets. The canonical correlations results showed that the inter markets integration was brought about mainly by the oil prices so that it became the price leader. This implied that those who controlled and manipulated the coconut oil market would succeed in controlling the coconut. Ali, Naik and Mallick (1995) attempted to indent the coconut market channels, to measure the price spread over time and space and to assess the impact of market regulations in coconut marketing in Orissa. He found that four or less number of intermediaries formed the marketing channels of coconut. Among them, village beoparies, traders, wholesalers and retailers were the notable market functionaries. Nearly 82 per cent of coconut farmers sold their produce in the village itself or in local hats. Literature Review 39 Village beoparies were largely responsible for assembling coconut in different wholesale markets of the state. The average marketing costs and margins and producer's share in consumer's rupee for coconuts passing through regulated markets accounted to per cent, per cent and per cent respectively whereas for coconuts passing through unregulated markets accounted to per cent, per cent and per cent respectively. It was found that a coconut farmer would save as much as per 100 rupees worth of coconuts, if he sells in the regulated markets. Thampan and Pankajakshan (1996) observed that the big copra milling establishments in India always find outlets in major markets of the state. In the assembling markets, oil was transacted mainly of upcountry markets through brokers or commission agents. They estimated that nearly tons of oil was marketed from Kerala annually. Important outside markets were Madras, Bombay and Calcutta from where oil ultimately traded through a large number of wholesale and retail outlets to remote villages of the country. Ramkumar (2001), in his study analyses the costs and margins in coconut marketing analysed the marketing of coconut and its products viz., copra and coconut oil in Kerala. The most important problem identified in marketing was the lack of adequate and fair price for coconut and its products and the fluctuation-annual and seasonal- in the prices. Three major reasons were identified. First, price instability led to a decline in the consumption pattern of coconut and coconut oil among its different users in the industrial and household sectors. Secondly, cheaper imports of coconut oil and substitutes like palm oil depressed the local market prices. Thirdly, the presence of intermediaries in the marketing channels led to a low price realisation to the producers. He analysed the costs and margins in various channels of trade and formulated a composite index of marketing efficiency for each channel. 254

6 Prabhu M. J. (2002), says that coconut yield is comparatively low especially in coastal area. Referring to the experiment conducted by the Central Plantation Crops Research Institute, Kasargod, Kerala, Prabhu points out that the reason for the poor nut yield is the poor sandy soils, poor retentive capacity for water and nutrients. Rethinam P. (2003) in the export of coir and coir products is sizeable whereas the export of other coconut based products is very negligible. Increasing global population and demand for coconut products, changing consumer preferences, intensifying safety and security concerns and shifting marketing networks have significant impact on the character and shape of the global market for coconut products. At the same time critical develop India s share in the export of coir and coir products is sizeable whereas the export of other coconut based products is very negligible. Increasing global population and demand for coconut products, changing consumer preferences, intensifying safety and security concerns and shifting marketing networks have significant impact on the character and shape of the global market for coconut products. PROBLEMS OF COCONUT MARKETING Coconut farmers are not exempted from the above phenomenon. They have very little control over production as also on marketing. This warrants having a probe on the marketing practices of coconut cultivators. Agriculture is traditional mass industry which has shifted from subsistence level to surplus production stage due to Green Revolution and the other rural development measures in the form of better infrastructure like irrigation, high yielding varieties of hybrid seeds, chemical fertilisers, labour, and cost efficient equipments etc. Problem of Selling-Presence of Intermediaries: What are the marketing channels open to the producers to sell their farm produce? The farmer may sell his produce at the farm in his village market or in the local market. As he moves from the farmhouse to the village and to the market, he incurs an additional cost of transportation. Besides, when he goes to sell in the local market, he incurs an opportunity cost of not being engaged in the production process on the farm. In other words, he would be willing to sell his produce at a lower price in his village or at his farm vis-a-vis the price prevailing in the market. Problem of Transportation: Regarding problem of transportation, the study revealed that, on an average, per cent (the highest) of the respondents reported 'abnormal cost' of transportation as the main problem they face in transporting their produce from the farm to the market. Inter cropping1mixed farming: Being a small holder s crop, coconut under monocropying does not provide adequate income and gainful employment to the dependent families. In a situation where coconut industry is threatened with recurring uncertainties, the need for a farm practice that augments the coconut fann income becomes imperative. Adoption of coconut based intercropping fixed farming (also called Integrated Farming System or 1.F.S) is the suggested alternative to boost the income from a unit holding. Institutional Support to Cultivators: On account of the peculiar nature of agriculture, unless some sort of support and assistance is received by cultivators, it will not be a promising enterprise. This is because in a country like ours agriculture is very much exposed to the vagaries of nature. Coconut cultivation is not an exception to this because crop failure takes place every now and then not only due to the failure of Monsoon but also due the occurrence of diseases and pests. All these may lead to frequent ups and downs in the prices of coconuts. Others Problems Yield Loss due to Diseases/Pests Problem of availability of climbing labour faced by cultivators Use of Modern Copra Dryer SUGGESTIONS The coconut growers in the sample area are lacking in availing the institutional credit for their regular maintenance of coconut gardens. Some sort of organized finance is the need of the hour. If not the sample coconut farmers always under the clutches of non-institutional agencies. Heavy price fluctuation causes unexpected loss in fie expected income. To stabilize the price of the coconut and its products the Government should come forward for the implementation of price guarantee scheme. Absence of coconut based processing industries in the study area isone of the reasons for the heavy price fluctuation in the coconut industry. Hence, Government of Tamil Nadu should come and take necessary steps to promote coconut based cottage and village industries and small scale units. Among the two institutional agencies in the study area, only one institution namely Pollachi Cooperative Marketing Society Ltd commences with copra procurement in collaboration with the National Cooperative Marketing Federation Ltd (NAFED) that too for a very limited period of time. The Anamalai Regulated Market is another institutional agency in the study area but this institution didn t deal with coconut marketing. Hence, the Government of Tamil Nadu must take essential steps to revitalize the institutional marketing agencies for the betterment of coconut farmers in the study area. Since the study area is intense coconut area both the Tamil Nadu and Indian Government may take successful steps for the establishment of integrated coconut processing complexes which will definitely augment the standard of living of coconut growers. Consumer preference around the world is changing in favour of natural health foods and beverages. Tender coconut is gaining acceptance in the developed, countries as a natural source of nutritious food and beverage. The consumer demand for this natural drink is now on the increase particularly in the context of the propaganda and awareness against artificial carbonated beverages like cola. This opportunity is being made use of by some countries for export. Already Malaysia, 255

7 Thailand and Sri Lanka have stated exporting tender coconut and for which special varieties have been identified and their cultivation promoted. CONCLUSION The coconut industry is growing in terms of production. However, its share in oil and fats trade has consistently declined in the past four decades. Vast growth opportunities remain for the coconut industry, but the marketing strategy needs a reorientation to suit to emerging trend. Awakening and alertness on diversification of coconut, with a motive to recapture the market have to be provided priority. The best option with vast growth opportunities for product diversification and value addition exists. Despite this vast potential, the industry can flourish only through strategic initiatives and synergy among the organised and unorganised market outlets function. Strategic marketing has to include product diversification, marketing intelligence backed by market research to widen the market base in different coconut growing region. Cooperation from the organisations and upfront approach is needed in partnership mode to address the issues in penetrating the existing markets. Thus, the coconut products recent boost will be sustainable and will contribute to raise prospects, for millions of people living in the tropics. REFERENCES 1. Tewari, S.C. and M.G, George, (1971), "Marketing of Agricultural Produce through Cooperative Marketing Societies - An opinion Survey". Indian Cooperative Review, S(2) pp Mathur, B.S. (1974), "Marketing of Agricultural Production - Role of Cooperatives". Indian cooperative Review, 11 (11) pp Sathyanarayanan, B.S. (1993), "Performance evaluation of Malanad Areca Marketing Co-operative Society Ltd., Shintoga, (Unpublished M.Sc. (Agr.) Thesis submitted to UAS, Dharward) pp Patel, M.S. (1976), "Cooperative Marketing in India - It's Problems and Prospects " Cooperative News Digest, 27 (9), pp Muniramappa, S.M. (1982), "Production Performance and Marketing Oilseeds in Karnataka - An Economic Analysis". Ph.D Thesis (unpublished), U S A. 6. Singh, Ramashray (1984), A Case Study of Cooperative Marketing Societies in India. Ph.D Thesis (unpublished), Banaras Hindu University, Banaras 7. Mittaine JF, Mielke T The globalization of international oilseeds trade. OCL 19: