The successful development of any agricultural crop is dependent on the market price and position it sustains in the market. A sustainable remunerative price is the only incentive which will encourage the farmer to manage his crop well leading to higher levels of production and productivity. Ultimately it is the returns that matter. Looking from such an angle, the year 2012-13 was a really bad year for coconut and its products. The price crash that occurred at the fag end of 2011 continued with onlya minor increase during December which provided an interim relief to the coconut farmers. Prices were as high as Rs. 10,148 per thousand nuts in May 2011 which was a bumper year for the coconut sector. It crashed to Rs.7,965 in December 2011. The yearlyaverage price recorded at Rs.9,069. Still adoption of alternative marketing systems and primary processing and conversion to intermediate products helped farmers gain reasonable price for their produce.
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