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Demand from the corporate sector and low arrivals of copra drove coconut oil prices to a new high in Kerala and Tamil Nadu. Prices touched ₹14,100/quintal in Kerala (₹13,900), while in Tamil Nadu it ruled at ₹13,800 (₹13,200).
According to Thalath Mahmood, Director, Cochin Oil Merchants Association (COMA), copra prices have surged to ₹10,400 a quintal in Kerala and ₹9,900 in Tamil Nadu against ₹9,800 last week. He cited the setting in of the monsoon coupled with upcountry demand for the price surge. “Till last weekend, the coconut oil was sold at ₹1,930-2,000 for 15-kg loose pack, but on Wednesday the price spurted to ₹2,100. There is no reason for such sudden increase and looks like mere speculation. But the offtake was limited,” said RM Palanisamy, a coconut oil dealer in Erode.
However, Bharat Khona, former Board Member of COMA, was of the view that a speculative trend is witnessing in the market trend with the absence of strong upcountry demand.
Sales of copra touched 120 tonnes a day and many reputed coconut oil firms are showing interest in buying at Erode paying ₹10,000 a quintal, which is ₹1,500 more than last week. On Wednesday, the copra was sold at ₹9,800-10,000 a quintal in Perundurai and other cooperative societies. Almost all the 50 quintals were sold.
( With inputs from Our Correspondent, Erode)
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