Soaring prices of coconut, coconut oil disrupts budgets of small-time eateries, households
Long established as an affordable snack of common people, Kozhukatta, ironically, rose to the premium league recently, thanks to the soaring price of coconut, which is hovering over ₹80 per kilogram.
For a budget hotel, the price of the snack proved too good either for its liking or that of the customers, notwithstanding its popularity. The soaring price of jaggery, giving a stiff competition to coconut, has not helped either.
'Four coconuts are needed for making around 40 Kozhukattas from a kilogram of rice powder, and we sold them for 12 a piece. As it proved unfeasible, we replaced it with 'Pongappam,' another rice powder-based snack made of semolina, sugar, tender coconut water, and relatively fewer coconuts,' said Omana Ratnakaran, secretary of Janakeeya hotel.
The hotel also marginally reduced the number of coconuts, from five to four, for making side dishes for lunch, but reverted as the taste proved a casualty. Besides, the hotel was forced to shift to alternative oil for frying fish as the price of coconut oil, which has surged beyond ₹400 a litre, turned premium. 'We had no other alternative as the price of a 10-litre tin of coconut oil surged to ₹4,500, which got exhausted in three days,' said Ms. Ratnakaran.
The household budget has also taken a hit owing to the mounting prices of coconut and coconut oil. 'Coconut and coconut oil are unavoidable since they are perpetual ingredients in almost all the dishes that we cook. Once used to dishes made in coconut oil, it is very hard to replace it with any other oil, both on account of health and taste. The best we can do is to reduce the volume,' said Sarada Joby, a housewife.
M.G. Ramakrishnan, former president of the Varappetty Service Cooperative Bank, attributed the rising prices of coconut and its products to multiple reasons. Coconut production, he said, had dropped by 20 to 25% over the past few years owing to various reasons, including climate change. 'The growing acceptance of coconut oil in the United States market has led to increased exports there. The demand for coconut products, including desiccated coconut powder and coconut milk, has also risen manifold in the European market post-pandemic,' he said.
Mr. Ramakrishnan cited the rising demand for coconuts for puja and related rituals in temples across the country as another reason. Truckloads of coconuts are being transported from coconut-rich regions in the south, such as Kangayam in Tamil Nadu — which plays a critical role in determining coconut prices — to places as far away as Jammu and Kashmir. This has also contributed to the rise in coconut prices, he said.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Mint
an hour ago
- Mint
Dollar Doubters Seed Historic Gains for Developing World Debt
(Bloomberg) -- US policy volatility has sent money managers scouring the world for alternatives, propelling local bonds from emerging-market countries to their best first half in 16 years. The surge in demand for fixed-income assets in EM currencies is largely the flip side of sinking confidence in the US dollar, which has tumbled almost 11% this year. That's its worst performance since the 1970s, and the losses are across the board, with the greenback falling against 19 of the 23 most-traded emerging-market currencies, and by at least 10% against 10 of them. The upshot is that an index of emerging-market local debt has returned more than 12% in the first half of the year, according to data compiled by Bloomberg, beating hard-currency bonds, which were up 5.4% in the same period. The first-half gains were the strongest since at least 2009. 'I don't think anyone had this much dollar weakness on their bingo card,' said Edwin Gutierrez, head of emerging-market sovereign debt at Aberdeen Group Plc. 'We thought local-currency debt would outperform hard-currency, but not by the magnitude that it ended up.' The money is flowing in unprecedented amounts. EM-debt funds attracted more than $21 billion so far this year, Bank of America Corp. said on Wednesday, citing EPFR Global data. These funds drew inflows for each of the past 11 weeks and $3.1 billion in the week through July 2. Boosting the case further is the prospect of interest-rate cuts in developing countries, according to Lewis Jones, a debt manager at William Blair Investment Management in New York. 'We expect more capacity from emerging central banks to cut rates, and also the trend of a weaker dollar versus the euro to continue,' he said. 'For European investors it could look more attractive looking forward.' Latin American economies have handed investors some of their best returns, with Mexico's local bonds, known as Mbonos, generating a gain of 22%, while some of Brazil's government bonds have returned more than 29%. The Brazilian notes bounced following a sharp selloff late last year, while traders piled into bets that policymakers are done with their hiking cycle. 'We remain invested in Mexican bonos, the trade is not over for us,' said Adriana Cristea, senior investment manager at Pictet Asset Management, adding that the firm has positions in local bonds across emerging markets regions, from Latin America to EMEA and Asia. Improving economic fundamentals in some emerging markets may also bring new issuers to the market. Ghana, Africa's top gold producer, is planning to resume domestic bond sales later in 2025 after short-term borrowing costs fell to the lowest in three years. Easing tensions between Israel and Iran also boost the investment case for local debt from the developing world. Despite the rally, Aberdeen's Gutierrez isn't yet looking to take profits on positions in EM local debt. He said his main overweights are Colombia, the Philippines and South Africa. More broadly, investors favor Brazil, South Africa and Turkey, BofA's head of global emerging markets fixed-income strategy David Hauner wrote in a note on July 3 based on feedback from clients. 'It will be a multi-year process' of rethinking US exposure, said Brad Godfrey, co-head of emerging markets debt at Morgan Stanley Investment Management, who helps oversee $20.6 billion. 'It will be a relearning process for some people that hadn't been exposed to local in a while.' --With assistance from Selcuk Gokoluk and Srinivasan Sivabalan. More stories like this are available on
&w=3840&q=100)

First Post
2 hours ago
- First Post
Why a tariff standoff with the EU could hurt the US more than it helps
As Trump threatens steep tariffs on European goods, economists warn that the trade standoff could end up hurting the US economy more than helping it. Higher prices, disrupted supply chains and retaliatory EU tariffs could strain American consumers and businesses ahead of a fragile economic recovery. read more As the world watches, President Donald Trump is poised to escalate a brewing trade battle with America's largest trading partner, the European Union, a move economists warn could ultimately backfire on the United States more than it benefits it. Having already slapped a 20% import duty on EU goods in April, Trump temporarily scaled it back to 10% in response to market jitters and to leave room for negotiations. But with a July 9 deadline looming and frustration mounting over the EU's trade stance, the president has now threatened to hike tariffs on European exports to an eye-watering 50%. STORY CONTINUES BELOW THIS AD If enforced, that could make a wide array of goods from French cheese and Italian leather to German electronics and Spanish medicines significantly more expensive in US stores. The EU has signalled it is ready to retaliate with tariffs on hundreds of American products, including beef, auto parts, aircraft and even beer potentially dragging both economies into a protracted and damaging trade war. The stakes are high in transatlantic trade The United States and the European Union together account for the world's most significant commercial relationship, with bilateral trade in goods and services reaching €1.7 trillion ($2 trillion) in 2024 or about €4.6 billion per day, according to Eurostat. Europe is a major buyer of U.S. crude oil, pharmaceuticals, aircraft, and cars, while the U.S. imports high volumes of European cars, chemicals, wine, and medical devices. While Trump has fixated on the EU's €198 billion ($233 billion) surplus in goods, U.S. dominance in services such as cloud computing and legal consulting helps offset that imbalance, bringing the real trade deficit down to roughly €50 billion ($59 billion). But Trump's focus on goods, and his calls for 'fair' trade, have prompted a sharp shift in tone from prior administrations which typically kept tariffs low 1.47% on EU imports to the US and 1.35% in reverse and engaged in more collaborative trade talks. US consumers and businesses may pay the price Raising tariffs may appeal to Trump's base as a show of economic strength, but analysts warn the fallout will likely be felt at home and soon. Higher import costs almost always translate into higher retail prices for consumers, especially for goods with few domestic substitutes. STORY CONTINUES BELOW THIS AD European luxury carmakers like Mercedes-Benz, which assembles some vehicles in Alabama, say they can cushion some of the blow for now. But across the board, auto prices and the cost of consumer goods are expected to climb if tariffs rise sharply. Makers of spirits like Italy's Campari Group have hinted they may absorb or adjust prices based on market conditions, but warn that long-term uncertainty could harm competitiveness. 'This kind of tariff escalation could squeeze US households at a time when inflation remains a sensitive political issue,' warned Holger Schmieding, chief economist at Berenberg Bank as reported by AP. Meanwhile, US manufacturers that rely on imported parts could also suffer, with ripple effects through supply chains and job markets. Though Trump argues that restricting foreign imports will fuel a revival in domestic manufacturing, most analysts say such a shift would take years, if it materialises at all. Trade tensions mask deeper issues Trump has also taken aim at deeper policy issues including EU food safety rules that restrict products like chlorine-washed chicken and hormone-treated beef and Europe's value-added tax (VAT), which ranges from 17% to 27%. But economists argue VAT systems are trade-neutral and aren't typically negotiated in trade deals. The EU, for its part, insists its consumer and environmental regulations are non-negotiable. STORY CONTINUES BELOW THIS AD 'The EU cannot rewrite its internal market rules just to satisfy US complaints that often reflect misunderstandings about how Europe operates,' Schmieding said. Could the US economy take a bigger hit? A failure to reach a deal could be more economically painful for the US than the EU. A review by Brussels-based think tank Bruegel estimates that in the event of tariffs rising to 25%, US GDP could shrink by 0.7%, while the EU's economy would lose around 0.3%. Some multinational companies, like luxury giant LVMH, have floated the idea of shifting more production to the U.S. to avoid tariffs, but warn that such decisions are costly and may ultimately depend on whether a deal is reached. With a tight deadline ahead, both sides may opt for a temporary framework that averts the worst-case scenario. Still, many in Europe believe the U.S. may back down from the most extreme tariff threats not out of goodwill but because of domestic economic realities. 'Trump may claim victory by rolling back some of the harsher threats,' said Schmieding. 'But if tariffs remain high, it's the American consumer who will bear the brunt.' STORY CONTINUES BELOW THIS AD With inputs from agencies


Hans India
2 hours ago
- Hans India
LG Electronics to work with Saudi Arabia to develop HVAC solutions
LG Electronics, South Korea's leading home appliance maker, said on Sunday it will join hands with Saudi Arabia to develop heating, ventilation and air conditioning (HVAC) solutions for regions prone to extreme heat. LG Electronics has decided to conduct a joint research project on developing HVAC technologies that deliver high-efficiency and high-performance even under extremely high temperatures with Saudi's major home appliances company Shaker Group and researchers from King Saud University in Riyadh and Pusan National University in Korea's southeastern city of Busan, according to company officials. Under the joint project, LG Electronics will provide system air conditioners for commercial use and households in the Middle Eastern country, which will be installed and operated by Shaker Group, reports Yonhap news agency. In detail, the Korean company plans to test its engine powered by artificial intelligence (AI), which can increase energy efficiency by automatically controlling air conditioning in line with the temperature. "This collaboration will serve as an opportunity for us to further strengthen our capabilities in HVAC solutions tailored for extremely hot regions," an LG Electronics official said. "We will continue to enhance our technological competitiveness in the global HVAC market by systematically establishing research and development infrastructure for each climate zone." Last month, LG Electronics said it has acquired a Norwegian hot water storage company to strengthen its foothold in the European air and water heating markets. The company said it acquired a 100 percent stake in OSO Group AS, a firm known for its smart stainless steel hot water tanks, aiming to enter the water heating segment in addition to its existing air heating business. LG Electronics did not disclose the acquisition price. "LG Electronics' high-efficiency air-to-water heat pump (AWHP) systems, combined with OSO Group's innovative hot water storage solutions, will help the company expand its presence in Europe's heating, ventilation and air conditioning (HVAC) market," the company said in a statement.