Whether a revamped value chain is inevitable? The case of producer organizations involved in the production and marketing of ‘neera’ in the coconut sector

Neera - the coconut inflorescence sap has been promoted as a potential value-added non-alcoholic beverage with abundant health benefits. The concerted effort of the stakeholder agencies could liberate the product from the policy regulations on its production under the excise act (known as ‘Abkari act’ in Kerala). Subsequently, the coconut producer federations (CPFs) in the state were granted licenses for ‘neera’ production and marketing. Notwithstanding the brighter projections on the sector, the majority of the CPFs discontinued the ‘neera’ enterprise, which they have initiated with greater enthusiasm. The present study is a modest attempt to trace the reasons for setbacks experienced in the ‘neera’ sector and also to provide a refined framework for revamping the sector. The details of licenses granted to the CPFs were sourced from the department of excise, Kerala. The size of the respondents was 177 (85 CPFs who are still active and 82 CPFs who had discontinued). It was observed that the ‘neera’ value chain is in the evolving stage and the withdrawal of the institutional support of coconut development board (CDB) had detrimentally affected the confidence of the CPFs ventured into it. The dearth of technical competence and lack of marketing skills were very much evident in the sector. The availability of ‘neera’ technicians (tappers) and the high wage rates have evoked concerns on the profitability as well as the assurance of continuous supply of the product. The study categorically highlights the need for a restructured value chain of ‘neera’ with specific roles assigned to the stakeholders through the creation of functional linkages.