The commencement of coconut season in Kerala since January has kindled the hopes of traders for a fresh market revival in coconut oil.
Thalath Mahmood, Director, Cochin Oil Merchants Association (COMA), said that good quantity of edible copra arrivals, especially from northern parts of the state, signalled the commencement of the season which are expected to continue till June. Coconut oil prices, now ruling at over ₹13,000 per quintal, are likely to come down shortly.
According to him, the high prices have affected local consumption considerably in the recent period with consumers shifting to cheaper edible oils. At present, major quantity of coconut oil is being used for industrial purpose despite its high price tag.
Meanwhile, the market is ruling steady with a slight variation in prices. In Kerala, the prices are ruling at ₹13,700 per quintal, an increase of ₹100 compared to last week. However, in Tamil Nadu it was in the same level quoted last week at Rs 13,500 per quintal, Thalath Mahmood said.
There was a slight increase in copra prices quoting at ₹9,150 per quintal in Kerala, while it was ₹9,800 in Tamil Nadu, at the same level quoted last week. The upcountry demand was good for edible copra due to demand from coconut powder mills, he said.
Bharat Khona, former board member, said that the copra market is still ruling at a higher rate despite the beginning of the season. With the free flow of commodity in the coming weeks, there is a feeling in the market for a further price drop in due course.