Financial Daily from THE HINDU group of publications
Monday, Mar 06, 2006
Financial Daily from THE HINDU group of publications Monday, Mar 06, 2006 |
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Agri-Biz & Commodities
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Oilseeds & Edible Oil Industry & Economy - Economic Offences Suspicion over coconut oil price fall G.K. Nair
Kochi , March 5 If the prevailing trend in the coconut oil prices is any indication, manipulations of its prices seem to have resurfaced in the market. The spot price of coconut oil on February 4 which was at Rs 4,800 a quintal shot up to Rs 5,150 a quintal on February 17 and remained steady till February 21. Futures prices also witnessed a rise during the period, according to market observers. The prices, they said, at the beginning of the year, i.e. on January 2 was at Rs 4,300 a quintal and the futures prices were February Rs 4,075, March Rs 3,850 and April Rs 3,835 a quintal. It gave the impression that some market players were trying to grapple with such rise in prices at the spot market and holding long positions in futures and taking advantage and earned huge profit, they alleged. The interpretation for the rise in price was that the Kerala Government had imposed entry tax on imports of coconut products from other States to Kerala. "Had that been the genuine reason for the rise in prices, the price should have continued to remain at high levels during the entire month and in subsequent months also". But, on the contrary, the prices started declining and touched Rs 5,000 a quintal on February 24 in Kochi, while in Thrissur market, it was quoted at Rs 4,750 a quintal. The abnormal increase and sharp fall in prices during the season and off-season needs to be viewed seriously, they said. If the futures prices are an indication of the trend in prices, downward trend has been visible from the start of futures contracts in each delivery.
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