The minimum support price announcement for copra during 2016 season has failed to cheer coconut oil market with prices continuing to plummet by nearly ₹1,000 per quintal in the last one month.

Absence of a firm corporate and upcountry demand hit the market with copra prices declining to ₹5,250 per quintal in Kerala and ₹5,000 in Tamil Nadu this week. Coconut oil prices also plummeted to a low of ₹7,600 in Kerala and the rates in Tamil Nadu stood flat at ₹7,000.

Nafed has fixed the MSP for 2016 season at ₹59.50 a kg for milling copra and ₹62.40 for ball copra, showing a minimal increase compared to the previous season. The earlier procurement was in 2012 season and there were no such initiatives in the subsequent years as the market price of copra was on the higher side.

Thalath Mahmood, President, Cochin Oil Merchants Association (COMA), was of the view that a mere declaration on procurement would not help revive the prices and it needs a strong follow-up action by various governmental agencies at the earliest, as the summer is on the peak.

Our Erode Correspondent adds: Coconut oil prices touched a five-year low of ₹70 a kg at Erode due to poor demand from North India. Prices decreased to ₹1,040-50 for a 15-kg loose pack. Copra was sold at ₹4,900-5,000 a quintal and within a month’s time more than 600 tonnes of copra was sold and major quantity was procured by the Kerala oil crushers.

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