The coconut oil market witnessed a price increase of ₹200 in a single day, touching ₹15,300 per quintal in Kerala and ₹14,600 in Tamil Nadu this week.
Buying by a leading coconut oil manufacturing firm at ₹500 per quintal of copra has led to the sudden surge in rates, which can be expected to continue, Thalath Mahmood, Director, Cochin Oil Merchants’ Association (COMA), said.
Copra prices are now ruling at ₹10,600 per quintal in Kerala and ₹10,300 in Tamil Nadu, an increase of ₹200 in the both the markets.
The market is facing a shortage of copra due to low arrivals. The monsoon has also impacted timely delivery. This situation has forced corporates to buy the commodity at enhanced prices. He said demand would go up in the next two months, especially in Kerala, on account of Ramzan and the Onam festival season.
According to Bharat Khona, former Board Member of COMA, major copra buyers had hiked the purchasing price and this has impacted coconut oil prices. The loose oil market in Tamil Nadu had touched ₹2,200 for 15 kg. However, upcountry buyers have not ventured into the market and are awaiting a correction in prices.
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