August 12, 2025 | The New Indian Express |
Kerala’s rambutan farmers are facing a crisis despite bumper harvests, as prices have collapsed due to oversupply and rising costs. Farmers like Noby Thomas, with 80 trees yielding up to 8 tons, find buyers unwilling to harvest since costs exceed returns. At Rs 140/kg offered locally, traders cannot profit when harvesting, nets, and transport push costs to Rs 170–180/kg, requiring Rs 200/kg just to break even.
Veteran growers like Suresh, who produced 7,000 kg this year, expect heavy losses as Tamil Nadu buyers pull out, breaking traditional supply chains to Chennai and Bengaluru. Rambutan, once Kerala’s most profitable crop, has seen rapid expansion, with an estimated 20,000–30,000 tons produced annually. However, intermediaries who usually purchase in bulk miscalculated rising costs, particularly for protective nets, making resale profitable only at Rs 300/kg — far above consumer willingness.
Retailers like Lulu Hypermarket priced rambutan at Rs 300–350/kg, halving demand. Experts argue prices must be lowered to Rs 100–200/kg to boost affordability and demand, while smallholders struggle without resources to protect or market their crops. With nearly a million trees maturing, supply will continue to rise, forcing farmers and traders to adjust pricing strategies and explore new markets.
