Drought may impact coconut production; rise in oil exports likely to keep prices firm

The prevailing drought condition is likely to affect the domestic coconut production, which is expected to fall by five per cent this year.

According to the statistical survey of the Coconut Development Board, the estimated figure of production in 2015-16 crop year (July-June) would be 19,444 million nuts against 20,440 million nuts production in 2014-15.

The actual decline in production presumes to be much more with mercury levels rising.

With the onset of summer and oppressive heat, there will be higher demand for tender coconut. However, the Board is bullish on the commodity market for coconut oil and copra, which is reviving up in the last few days witnessing an increase in prices. According to Board officials, the scenario is expected to continue as the arrival of coconut and coconut products is low in the major coconut markets. With the international price of coconut oil ruling higher than the domestic price, there is hardly any scope for import of these products. While the average monthly international price (cif, Rotterdam), for March was $145, the domestic price (Kochi market) ruled at $127 per quintal.

Further, the export of coconut oil and desiccated coconut is showing an increase from the beginning of this year, the officials said, adding that all these factors are indicating a positive influence on coconut oil prices.

Thalath Mahmood, President, Cochin Oil Merchants Association, admitted that there was some buoyancy in the coconut oil market in the last few weeks, with the prices rose to ₹300 per quintal.

However, there was a fall of ₹100 this week in the absence of a firm corporate demand. Increase in local demand also led to price rise.

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