The Centre’s decision to drop its plan to import coconut oil has failed to cheer the market, with the prices witnessing a steady decline this week.

However, the continuing rains in Tamil Nadu have pushed up copra prices, affecting its arrivals from various production centres.

Prices are now ruling at ₹6,900 per quintal in Tamil Nadu against ₹6,500, while in Kerala it went up to ₹6,950 per quintal against ₹6,800 quoted last week.

Several corporate companies are purchasing the commodity at higher prices to meet their production requirements, Thalath Mahmood, President of Cochin Oil Merchants Association (COMA), said.

Coconut oil prices are ruling at ₹10,000 per quintal in Kerala, while it was ₹9,350 in Tamil Nadu.

The rains have dampened all activities connected with coconut processing and even copra drying. However, the prices are likely to decline further in the coming weeks with good production and low demand, he added.

Meanwhile, the Union Government’s decision to stop coconut oil imports through State Trading Corporation has come as a relief to coconut growers both in Kerala and Tamil Nadu. A decision to this effect was taken following the concern raised by the Kerala Government as well as from other quarters.

This was conveyed to Mullappally Ramachandran, MP, by the Union Commerce Minister, Nirmala Sitharaman. In the letter, the Minister pointed out that DGFT has reviewed the matter and decided to reduce the quantity of coconut oil imports from 10,000 tonnes to 2,000 tonnes.

It may be recalled that DGFT had approved its inter-ministerial committee recommendations seeking the issuance of authorisation for import of coconut oil by STC for a leading corporate firm in Mumbai on high sea sales basis. Accordingly, STC has imported 2,000 tonnes.

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