Coconut oil continued its downtrend in Kerala and Tamil Nadu this week with prices falling by Rs 500 a kg.
According to Thalath Mahmood, Director, Cochin Oil Merchants Association (COMA), the market was very weak with prices declining to ₹13,500 per quintal in Kerala (₹14,400) and ₹12,500 in Tamil Nadu (₹13,000). Copra prices also started moving southwards at ₹9,420 per quintal in Kerala (₹9,800) where as the figure touched ₹8,500 in Tamil Nadu (₹9,200).
Citing the commencement of the season as the reason for price drop, he said absence of a local demand and consumer shift to other cheaper edible oil also contributed for the price fall. Major buyers like leading corporate consumers abstained from the market at these higher price levels.
Price drop in the last few weeks was in the range of ₹200-300, he said adding that the market is expected to be steady by the year end with prices quoting in the range of 100-110 per kg. However, he said that the market will witness the sale of loose and packet coconut oils extracted from Sabarimala copra with the commencement of the pilgrim season.
The state government agency Marketfed had got the contract to auction Sabarimala copra in this season. According to officials, the agency is expecting 1,500 tonne of copra this season, of which, a limited quantity of samples would be placed at the Kangayem auction centre for the benefit of small and medium traders.
Copra available from the hill shrine is good as far as the quality is concerned, but its availability in multiple varieties that too in large quantities needs grading and proper washing so as to remove the ghee content from coconuts. This is a time consuming process, the officials added.
Bharat Khona, former Board Member, COMA, said that the price drop is evident in the loose oil market rates in Tamil Nadu which stood at ₹1800 for 15 kg against ₹1,900 last week.