Short supply of copra has pushed up coconut oil prices to a new high touching ₹127 per kg in Kerala and ₹125 in Tamil Nadu markets this week. Copra rates are ruling at ₹90 per kg both in the Kerala and Tamil Nadu markets.
Bharat N.Khona, former Board Member, Cochin Oil Merchants Association (COMA) pointed out the drought like situation in Tamil Nadu has affected copra arrivals from the terminal markets of Kangayam and Pollachi and this was the reason for the prices staying at higher levels.
There were also reports that leading production units in Tamil Nadu had closed down their units in Tamil Nadu due to copra shortage, he said.
Thalath Mahmood, Director, COMA, said even though the season has commenced in Kerala, the arrival of sufficient quantities of copra was not visible in the market. This may further move up prices in the short term.
He attributed exports of raw coconuts to West Asian markets in large quantities as the reasons for copra shortage. Leading corporates are purchasing copra at higher prices to meet their production requirements. The demand for tender coconuts during the summer season also contributed to the copra shortage, he said.