Copra and coconut products prices are likely to rule stable in the coming months, with the demand from upcountry markets are scaling new highs.

An increased price trend is expected in the coming months, as the coconut available is mainly sold as raw nut for industries and also for upcountry market for exports and domestic purposes, according to the Coconut Development Board.

In a statement issued here, the Board said that conversion of coconut into copra is minimum as the expected level of copra is not arriving in the market. Quality copra is expected to arrive from March, which will give a boost to the sector.

According to the Board, the price rise was due to drought in major growing districts in Karnataka and inability of farmers to store their produce for converting into ball copra.

Significantly, the demand for ball copra in upcountry markets has boosted the price to record level.

Even though the arrival of ball copra declined, the Board clarified that the prices may sustain further in the coming months even as new arrivals are expected to emerge in May-June.

The market is facing shortage of milling copra, as the stocks with Nafed are fully depleted and the coconut production in major growing States fro 2014-15 are not showing any significant increase vis-a-vis previous year.

The export of dry coconut to neighbouring countries is also witnessing steady increase despite high domestic price. Likewise, exports of virgin coconut oil also registered a sudden spurt since December.

In view of these developments, there is hardly any chance of a fall in coconut prices.

Published on February 13, 2015