Coconut oil prices continue to rise in Kerala and Tamil Nadu with prices touching a record high. Prices in Kerala are ruling at ₹129 a kg (₹127), while in Tamil Nadu they were ₹130/kg against ₹125 last week. Traders cited poor copra arrival for the surge in prices. Copra prices have also gone up, quoting ₹94 (₹90) in Kerala and ₹93 in Tamil Nadu against ₹90 last week.

Bharat N Khona, former Board Member, Cochin Oil Merchants Association (COMA) said that the upcountry and corporate buying has dropped because of the surge in prices and they may enter anytime in the market after correction in prices.

Prices of other edible oils such as palm kernel oil and palmolein are also higher at ₹99 a kg and ₹65 respectively, he said. According to Thalath Mahmood, Director, COMA, lower production has been reported from various parts of Tamil Nadu and Kerala even after the commencement of the season.

It is reported by traders from these States that the production has dropped 40-50 per cent, affecting copra arrivals. They attribute the drought like situation in both the States to lower production. This situation may further push up prices of coconut oil in the short term. A clear picture will emerge by the end of April, he said.

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