Coconut shells open up new avenues for Karnataka farmers

The humble coconut shell is seeing a spike in demand, thanks to the increased use of activated carbon and shell charcoal in various industries. As a result, even though copra rates were down this year, coconut farmers remain unfazed.

In five years, the price of a tonne of coconut shells has almost doubled. “We used to get anywhere between Rs 7,000 and Rs 8,000, whereas it’s about Rs 14,500 and above for a tonne now,” says Sreeharsha, a coconut farmer from Thimlapura village in Hassan district.

Industries that process these shells use them in handicraft, agarbathis and biofertilisers. Shell charcoal and activated carbon are used for melting and purifying metals, engine oil, water purification, paints and medication. Trends in skincare have also upped the demand.

Karnataka is the third largest producer of coconuts in the country after Kerala and Tamil Nadu. India produces 34 per cent of the world’s supply of coconuts. This year, the export of coconut and related products totalled Rs 3,237 crore, with shipments increasing by almost 40 per cent from Rs 2,294 crore last year.

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The result, as coconut farmer Pratham Kumar will tell you, is that no shells are spared in his village Chikkanayakanahalli in Tumakuru. “Aggregators come to every home. Sometimes farmers hire autos and tractors to transport shells if they have sufficient quantities,” he says.

Narasimharaju, who owns a shell charcoal industry in Tiptur town, says that shells travel all the way from cities too. “Agents visit hotels and homes in cities to collect shells. This is because activated carbon and shell carbon are used in almost every industry in some capacity,” he says.

The shells are sold to industries in Karnataka, Kerala or Tamil Nadu, which generally subject them to high temperatures in pits in the ground. “The process produces gases that can be used as biodiesel and oils that can be used in the feed of fish and cattle,” says Narasimharaju.

Although the demand for coconut shell-based products has been high, setting up shell charcoal or activated carbon industries is a tough task. “An individual would need about Rs 5 crore of initial investment and Rs 4-5 crore of working capital to set up a business. Additionally, they must also be aware of export protocol,” says an official from the coconut development board.

These requirements mean that only a few industries come up annually in Karnataka. “The government provides 25 per cent financial assistance for entrepreneurs under the Technology Mission on Coconut scheme to encourage industries,” he says.