Coconut Board bets on monsoon to push up prices

The Coconut Development Board is pinning hopes on the onset of the South-West monsoon to improve prices of coconut oil and copra.

The starting of rains by this month-end would hamper copra arrivals from major production centres and this would push up prices, including raw coconuts.

Besides, the anticipated production drop for raw nuts for 2015-16 crop year is likely to further boost up rates by June.

According to Board officials, the recent drive against adulterated coconut oils by the Kerala Food Safety authorities by banning nearly 14 existing brands has led to a good demand for pure variety coconut oil among local consumers.

With the international price of coconut oil ruling higher than the domestic price, the officials also clarified that there is hardly any scope for import of these products. Further, the export of coconut oil and desiccated coconut is showing an increase from beginning of this year and all these factors led to more exports.

This is evident from the growth in export of desiccated coconut, copra and coconut oil in the first week of April, the officials said.

However, Thalath Mahmood, President, Cochin Oil Merchants Association, was of the view that any improvement in prices would mainly depend on a firm corporate buying. Right now, corporates are staying away from the market anticipating a further price fall.

The absence of a strong corporate buying is obvious from the availability good quality Lakshadweep copra, he said.

Copra prices have come down to ₹5,300 a quintal in Kerala and ₹5,100 in Tamil Nadu this week. Coconut oil prices also plummeted to ₹7,800 in Kerala and ₹7,400 in Tamil Nadu.

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