Absence of strong corporate buying and lack of local demand has impacted the coconut oil market in Kerala and Tamil Nadu this week, bringing down prices further.    

Due to the weak demand, a leading corporate engaged in coconut oil production, started buying copra at lower than the actual price. It quoted ₹50 less than the market price, Thalath Mahmood, Director, Cochin Oil Merchants’ Association (COMA) said.

He said several soap and biscuit makers are now shifting to the cheaper and more easily available palm kernel oil to meet their production requirements.   

The weak demand has also resulted in a drop of nearly ₹1,800 per quintal for coconut oil in the last one month, he said, and added that there was clear shift to other cheaper edible oils.

The prices this week quoted at ₹15,000 per quintal in Kerala (₹15,600) and ₹14,500 in Tamil Nadu against ₹15,300 quoted last week. Copra prices have also started cooling down, with prices ruling at ₹10,000 per quintal in Kerala (₹10,500) and ₹97,000 in Tamil Nadu (₹11,000).

The demand for edible copra has come down in Kerala and there is ready availability, especially in the northern districts, which is sufficient to meet the present demand in the State, he added.  

The continuous fall in prices in the last few weeks was a clear indication of the speculative trend being witnessed in the market, Bharat Khona, former Board Member of COMA. However, he felt that prices were still on the higher side and would undergo a further correction in the absence of upcountry buying.

    

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