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An acute shortage of copra, affected due to lower coconut production owing to drought in Tamil Nadu, has driven coconut oil prices to a record 1,900 for 15 kg on Friday. The surge to record is despite poor sales.
Currently, most of the sales are for use in the domestic market only, while many are switching their preference to palm oil which is available at Rs 65-70 a kg.
R.M. Palanisamy, a coconut oil dealer in Erode, said due to the increase in the price of coconut oil, palm kernel rates have also increased to Rs 90-100 a kg. Most of the biscuit firms are patronising palm kernel.
Due to severe drought in Tamil nadu, over ten lakh coconut trees have withered and as a result production of over 10 crore nuts has been affected.
On Friday, copra sold at Rs 9,500-9,700 a quintal in private markets. At the Avalpoondurai Regulated Market Committee, copra was sold at Rs 8,800-9,265 a quintal for the first grade and Rs 7,070-8,705 a quintal for second grade copra. All 52.5 tonnes (1,050 bags) on offer were sold.
About a 100-and-odd coconut oil crushing units have been closed in and around Kangeyam and other parts of Tamil Nadu, said Palanisamy.
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