Coconut oil market both in Kerala and Tamil Nadu started sliding down this week with a price decline of ₹300 per quintal compared to last week. Prices in Kerala have come down to ₹16,200 per quintal, whereas in Tamil Nadu the prices stood at ₹15,800 per quintal.
Thalath Mahmood, Director, Cochin Oil Merchants Association (COMA), said that the dwindling demand for edible copra and raw nuts from Pakistan also contributed to the drop in prices.
The prices are expected to fall further after the Onam festival season. Copra prices also started moving southwards with the prices quoting at ₹11,100 per quintal in Kerala and ₹10,800 in Tamil Nadu, he said.
However, the commencement of copra season in Tamil Nadu, especially at Pollachi, has revived the hopes of traders. This coupled with the bountiful monsoon in various parts of Kerala this year may turn good for the coconut sector with the expectation of a good season next year, he said.
Bharat Khona, former Board Member of COMA, said that the market is likely to decline further from these higher level prices due to consumer shifting to other cheaper edible oils. The loose oil market in Tamil Nadu stood at ₹2,330 for 15 kg, which, according to him, is speculative.