The coconut oil markets both in Kerala and Tamil Nadu have been in holiday mood with prices remaining more or less steady.

The prices in Kerala are ruling at Rs 60 per kg, at the same level as quoted last week, while in Tamil Nadu it went up by 50 paise, quoting Rs 58.50. Palm oil and palm kernel oil prices also stood at last week’s level of Rs 58 and Rs 52 a kg respectively.

Copra prices both in Tamil Nadu and Kerala stood at Rs 4,200 per quintal, the same as that quoted last week.

According to Prakash B. Rao, Vice-President, Cochin Oil Merchants’ Association (COMA), festival demand was low and was not reflected in the market with less interest shown by upcountry buyers.

However, traders expect an improvement in coconut oil prices in the coming weeks due to the recent rally in palm oil prices in Malaysia. It is reported that palm oil prices in Malaysia have firmed up in the last couple of days due to bulk enquiries from Asian countries, he said.

Rao said lack of demand from upcountry buyers and local consumers also reflected in Muhurat trading in coconut oil in Kochi. The trade during Muhurat was seen lower at 200 quintals compared with 600 quintals last year, he added.

Meanwhile, the Kerala Government has approved a scheme prepared by the Agriculture Department for coconut procurement in the State at Rs 14 per kg through Krishi Bhavans. This would be processed at 20 centres, including 14 farms of the Agriculture Department.

The State Cabinet had sanctioned Rs 8 crore for the Rs 21-crore scheme. The remaining would be adjusted from the budgetary allocations for the department

(This article was published on November 15, 2012)
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