Coconut shortage threatens Bagerhat’s oil mills

Farmers’ preference for green coconuts has driven up raw material costs,
pushing traditional oil mills towards collapse

A shortage of mature coconuts has brought Bagerhat’s traditional coconut oil industry to the brink of collapse, leaving most mills idle and many workers without regular income.

Mill owners say the shortage has made regular production virtually impossible, leaving machinery idle and capital tied up in struggling businesses.

As farmers increasingly harvest green coconuts for quicker returns, the scarcity of mature nuts has driven up raw material costs. Higher production costs have pushed up retail prices, driving customers away and further squeezing traditional producers.

Of the 40 coconut oil mills that once operated in Bagerhat town, only 13 remain, according to official records and mill owners. Eleven stay shut for most of the year, while two have closed permanently over the past five years. A recent visit found only Roni Coconut Oil Mill in operation.

“We are forced to keep the factory gates padlocked month after month,” said Kamal Shaha, owner of a shuttered mill at the Bagerhat BSCIC Industrial Estate. “With mature coconuts unavailable and overhead costs mounting, turning the machines on only deepens our financial losses.”

At Roni Coconut Oil Mill, owner Masud Rana is among the few still trying to keep production going. Mills typically do not buy coconuts directly from farmers. Instead, traders bring mature coconuts for processing and receive payment based on the quantity of oil extracted.

The shortage has reduced operations to one or two days a month, and sometimes just two or three days over three months, Rana said.

The crisis persists despite an increase in local coconut cultivation. Bagerhat now has around 11 lakh fruit-bearing coconut trees, up from approximately 9.5 lakh in 2021-22, according to Motahar Hossain, deputy director of the Department of Agricultural Extension (DAE) in the district.

The problem, millers and officials say, is that farmers increasingly harvest coconuts while they are still green to secure quicker returns rather than waiting for them to mature.

Babu Ghosh, a coconut trader based in Kachua, said a pair of mature coconuts now costs Tk 250, compared with Tk 80 to Tk 100 five years ago.

“Green coconuts are more profitable and have stronger demand, so there are hardly enough mature coconuts in the wholesale markets,” he said.

Motahar said farmers prefer selling green coconuts because they can earn cash every three to four months, reducing the risks associated with waiting for mature fruit.

Md Sharif Sardar, an industrial official at the Bangladesh Small and Cottage Industries Corporation (BSCIC), said local mature coconut production had declined significantly compared with the past, making it difficult for mill owners to manage production costs amid soaring raw material prices.

The rising cost of coconuts has also pushed up coconut oil prices. A kilogramme of oil that sold for Tk 400 to Tk 500 in 2019 now costs Tk 800 to Tk 900, with prices reaching Tk 1,100 in winter, Rana said.

“Even when we manage to secure coconuts and produce oil, the high retail price drives buyers away,” he said. “We are running at a fraction of our capacity just to survive, but if this crisis persists, we will have no choice but to close down for good.”

Traditional mills are also losing customers as households increasingly turn to bottled edible oil sold by large corporate brands.

“People now mostly buy bottled oil from different corporate companies. As a result, coconut oil has become a slow-moving item in the market,” said consumer Makon Debnath.

The combined effects of raw material shortages, rising prices and changing consumer preferences have left traditional millers struggling to stay afloat.

The downturn has hit around 1,700 factory workers, many of whom now go months without regular work. Sudeb Das, a mill worker, said his factory operates only when traders can supply enough coconuts.

“The mills run for just two or four days every three months and stay closed the rest of the time,” he said.

The prolonged shutdowns have pushed workers into severe financial hardship.

“What are we supposed to do? We’re forced to starve. I’ve already had to sell off my homestead land just to survive,” Sudeb said.