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Corporate demand for edible grade copra has lifted the prices of coconut oil in Kerala and Tamil Nadu this week.
Prakash B. Rao, Vice-President, Cochin Oil Merchants’ Association (COMA), said the market is bullish, especially because of the ensuing festival demand. Prices touched Rs 71 for a kg in Kerala, while it stood at Rs 68 in Tamil Nadu, an increase of Rs 2 per kg in both States.
He said there has been good demand for edible copra, especially from North India as well as from corporates, and this has perked up coconut oil prices. Copra prices are now ruling at Rs 5,200 for a quintal in Kerala and Rs 5,000 in Tamil Nadu, an increase of Rs 200 per quintal in both the States.
The terminal markets in Vadakara in Kerala and Kangayam in Tamil Nadu have emerged as preferred markets for copra procurement, he said.
Rao expressed the hope that the strong trend would continue for the next couple of weeks, with prices touching Rs 75 a kg of coconut oil and Rs 5,500 for a quintal of copra.
Substitute oils also fared better this week with palm oil quoting Rs 56 a kg and palm kernel oil Rs 58 a kg.
Thalath Mahamood, former President, COMA, attributed the price rise to the bulk purchase of copra by corporates from the Tamil Nadu, Kerala, Karnataka and Andhra Pradesh markets. There were reports of upcountry buyers purchasing at Rs 52 a kg. The upward trend is expected to continue till the end of the festival season, including Pooja and Deepavali.
Bharat N. Khona, former Board Member, COMA, said the short supply of copra to the Kerala markets due to the heavy rains last week has given the markets a boost, with prices perking up. This, coupled with local demand for Onam, would cheer the market in the coming days, he said.
The Tamil Nadu loose market has shot up to Rs 1,020 for 15 kg against Rs 980 quoted last week.
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