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The coconut oil market both in Kerala and Tamil Nadu continues to slide due to low corporate demand and a reduction in local consumption.
Though the market had gone up to more than Rs 70 a kg in the last few weeks, it has come down to Rs 67 per kg in Kerala and Rs 63 per kg in Tamil Nadu this week.
Copra prices also declined to Rs 4,675 per quintal in Kerala and Rs 4,550 per quintal in Tamil Nadu.
According to Prakash B. Rao, Vice-President, Cochin Oil Merchants’ Association (COMA), traders expect that the designated agencies, including Marketfed and Kerafed, would commence raw coconut procurement at Rs 16 per kg with immediate effect.
The expected demand for copra could spark a price rise in both copra and coconut oil in the short term.
He pointed out that the surplus rains were a good sign for improving productivity and the market was expecting 5-10 per cent more production in the next season. However, the movement of coconut oil to upcountry markets from Kerala was affected by the continuing rains in the State.
Imported edible oils such as palm oil and palm kernel oil had also shown an upward trend this week due to rupee fluctuations. The price of palm oil stood at Rs 54.75 per kg, while it was Rs 54 per kg for palm kernel oil.
Thalath Mahamood, former President, Cochin Oil Merchants’ Association (COMA), said the market was witnessing a steady line with no signs of price variations. This was because of the surplus availability of coconut oil in the market. The demand for coconut oil had also come down due to cheap import prices for edible oils.
Bharat N. Khona, former Board Member, COMA, said upcountry demand was less in spite of low prices for coconut oil. He alleged that speculators were trying to intervene in the market by hiking prices, which would send a wrong signal.
He said the price of 15 kg of loose coconut oil in Tamil Nadu two days back was Rs 930. However, there was a sudden spurt of Rs 20 per kg without any genuine demand, which saw prices hitting Rs 950 on Tuesday, he said.
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