An Indian man cuts coconuts from a palm tree in Varkala, Kerala. EyesWideOpen / Getty Images
An Indian man cuts coconuts from a palm tree in Varkala, Kerala. EyesWideOpen / Getty Images

India's coconut men find money grows on trees



NEW DELHI // Not very long ago B Raja could find only sporadic employment in his village in the Theni district in the southern state of Tamil Nadu.

He worked odd jobs, usually herding livestock for farmers. Life was hard, especially for a family of four. Then, a month ago, his fortunes changed. He learnt to climb coconut trees and harvest their crop.

"Now I climb 40 trees a day, and there's so much work to be had," he says. "For the first time in my life, I have a steady stream of cash. It's a blessing."

The initiative that changed B Raja's life began 18 months ago with a coconut crisis in Kerala. Only 10,000 tree-climbers practised the traditional craft, and at least another 40,000 were needed to harvest all the state's coconuts.

Production had dipped, and farmers were harvesting crops only once every three months, instead of the usual 45 to 60 days.

"Climbers used to be of a particular caste, and their children were not willing to take up their father's profession, because it wasn't very remunerative," says Sugata Ghose of the Coconut Development Board in Kochi, which works under the Indian government's agriculture ministry. "And people from other castes were unwilling to take up these jobs."

The solution was a government-funded training scheme called Friends of Coconut Tree, which has grown from its Kerala roots and has been operating since late last year in Tamil Nadu, Karnataka, Maharashtra and Andhra Pradesh.

The board was careful to avoid the word "climbers" in its promotion of its training programme, thus steering clear of caste connotations.

"This is why we called it 'Friends of Coconut Tree'," Mr Ghose said. "Now even higher-caste and educated people are coming into the programme, because there is the promise of a good income, and because they are getting trained by a government organisation."

The training was initially slow to take off but between August 2011 and March 2012 more than 5,600 people completed the six-day course across every district in Kerala. Since then about another 4,400 trainees in the five states have been certified.

The Coconut Development Board ties up with NGOs and district-level agricultural research centres to hold the training programmes. Each group of about 20 trainees cost the government 68,500 rupees (Dh4,600).

Each student is paid 150 rupees a day and receives a coconut-harvesting kit worth 2,500 rupees after completing the programme.

Trainees are taught to work with automated tree-climbing devices, which are now becoming popular throughout south India. They are also instructed in methods of pest control and tree maintenance.

The course includes other general but valuable lessons: first aid, the rudiments of managing savings and social security funds, and communication skills.

The board now prescribes a minimum wage for tree climbers, said Mini Mathew, the programme's publicity officer. "Earlier, if he was lucky, a coconut-tree climber might have been paid 10 rupees to scale a tree," she said. "More probably, he would have been paid in coconuts."

India is the third-largest coconut growing country in the world, producing 15 billion nuts annually. Tamil Nadu and Kerala are India's most productive coconut producing states.

Today, Ms Mathew said, a climber might get up to 25 rupees a tree in rural areas, and even 50 rupees a tree in towns and cities. An experienced climber can tackle up to 40 trees a day. Monthly incomes now range from 15,000 to 30,000 rupees a month.

The board connect climbers with tree owners, via an extensive directory on its website. "We also help them get bank loans to buy two-wheelers, so that they are more mobile," Mr Ghose said.

Even with all these benefits, though, it is a struggle to retain the new recruits.

R Mathavan, a 23-year-old graduate in computer science, went through the programme in the district of Thanjavur, in Tamil Nadu, last October. He had gone, he said, "primarily because my father was in this line of work, and because a few of the other boys in my village wanted to go".

After Mr Mathavan completed the course, he and nine other trainees had planned to take out a bank loan and set up a coconut harvesting business, leasing their services to tree owners across the district. They had even planned a side venture in selling coconut water.

But the coconut harvests were too sporadic for Mr Mathavan.

"We all went back to our respective lines of work," he said. He moved to Chennai and worked in a photographic studio for a few months before returning home.

But Mr Mathavan insists that he found the course useful. "It's always a worthwhile skill to have," he said. "And if five or six of us can get together and revive our plans, I think we can still set up a good business out of it."

A timeline of the Historical Dictionary of the Arabic Language
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Arsenal's pre-season fixtures

Thursday Beat Sydney 2-0 in Sydney

Saturday v Western Sydney Wanderers in Sydney

Wednesday v Bayern Munich in Shanghai

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July 30 v Sevilla in London

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million