The entry of adulterated coconut oil into Kerala is now on the decline and this has even reflected in the coconut oil prices in Tamil Nadu this week, recording a drop of ₹100 a quintal at ₹13,500, Thalath Mahmood, Director, Cochin Oil Merchants Association (COMA) said.

A senior official in the Kerala Food Safety Authority told BusinessLine that the checkpost-centric examination on coconut oil consignments would make those companies involved in such tainted business more cautious. It was also decided to keep a close watch on companies who brought coconut oil and palm oil in bulk quantities into the State.

Kerala, which consumes a lion’s share of coconut oil in the country, has banned the sale of nine branded coconut oils last week after they were found adulterated with palm kernel oil and palm oil.

Meanwhile, the coconut oil market in Kerala is on a steady line this week with local demand perking up due to Vishu festival season. This has slightly impacted the prices, recording an increase of ₹100 a quintal touching ₹14,000.

However, copra prices in both the States remained at the same level at ₹10,000/quintal, Mahmood said.

According to Bharat Khona, former COMA board member, the corporate and upcountry demand has not yet picked up at these higher prices and they are on a wait and watch mode.

Our Erode Correspondent adds: Copra prices decreased but the price of thecoconut oil was unchanged.

“Copra was sold at ₹10,200 a quintal two or three days back, but on Wednesday it was sold at ₹9,700-9,900 in Erode district. Oil crushers are selling the coconut oil at ₹1,900-2,000 for 15-kg loose pack. Still many biscuit firms prefer palm kernel oil as it is available for ₹8,500-9,200 a quintal,” said RM Palanisamy, an oil trader.

Similarly, the edible copra prices decreased and traded at ₹10,700 a quintal on Wednesday.

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