Tight supply of copra and local demand ahead of Vishu festival season has impacted the coconut oil market both in Kerala and in Tamil Nadu this week.

The market, which is witnessing a steady line, recorded an increase of ₹100 a quintal, touching ₹13,900 in Kerala and ₹13,600 in Tamil Nadu, Thalath Mahmood, Director, Cochin Oil Merchants Association (COMA), said.

According to him, supply crunch has affected copra prices, which are now ruling firm at ₹10,000/quintal in both these States. The shortage has forced majority of the traders to stock in large quantities. Besides, the drought-like situation in some parts of interior Tamil Nadu also affected copra production and supply.

However, copra arrivals from the Andamans to Kerala on a limited scale have revived hopes in the market on account of its low price at ₹90-95 a kg. The market has already started receiving copra from the Lakshadweep, he added.

With the starting of the harvest season in Kerala, he said there has been a good demand for raw nuts both for upcountry markets and abroad.

Bharat Khona, former COMA board member, said that upcountry buyers and corporates are now in a wait-and-watch mode anticipating a downward correction in prices.

Our Erode Correspondent adds: Coconut oil prices in Erode markets gained due to demand. “Coconut oil was at ₹2,050 per 15-kg loose pack from last week’s ₹1,950. The oil crushers have received a few demand and sold reasonable quantity. They are also expecting an increase in prices,” said RM Palanisamy, an oil trader. Meanwhile, the price of the copra also increased to ₹10,200 a quintal. More than 50 tonnes of copra were sold within two days.

Palm oil traded at ₹4,800 a quintal and the palm kernel oil at ₹9,000 which are much cheaper than coconut oil.

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