Coconut growers have found a new way to supplement their income at a time when the rubber sector is reeling under a prolonged price crash.
Farmers are not only cashing in on neera, the nutritious non-alcoholic drink tapped from coconut palms, but also turning their attention to its by-products such as sugar and honey, which are in good demand, particularly in Europe.
Many of the 25 coconut producers have started production of neera and associated products, ensuring a minimum income of Rs 1,000 per tree a month to farmers from neera alone.
The companies have been formed by numerous coconut societies, with each comprising 40 to 100 farmers, mainly in Kerala, Karnataka and Andhra Pradesh. "We are in the process of mobilising funds for our Rs 8 crore-processing plant for neera and its by-products like sugar and honey. We currently have an order for half a tonne of sugar from London and we are unable to meet it," said P Vinod Kumar, chairman of Palakkad Coconut Producers' Company in Kerala.
The company is going in for an organic certification for its sugar, which costs upward of Rs 400 per kg. "Since there is better health awareness in Europe, coconut palm sugar is increasingly being preferred to cane sugar," he added, adding the company also plans to produce palm honey. Even in India, coconut sugar has a niche market, according to NU Raam Mohan, who produces coconut sugar from neera taken from his coconut farm in Palladam in Tamil Nadu.