Fresh enquiries for bulk exports of coconut oil have revived hopes among traders for the forthcoming harvest season.

Thalath Mahmood, Director, Cochin Oil Merchants Association (COMA), said that that there are genuine queries especially from the US, Canada and West Asia in this regard, which is expected to boost the market.

However, the high price of the commodity, which is hovering in ₹130-135 range, may deter this move considering the cheap availability of other edible oils in the market.

According to Coconut Development Board officials, exports of virgin coconut oil to the US have shown an unprecedented increase in December, while movement of fresh coconuts to GCC countries and dry coconut to Pakistan are on the rise.

Meanwhile, the coconut oil market in Kerala and Tamil Nadu is in a steady line this week with the prices ruling at ₹13,300 per quintal (₹13,400) in Kerala and ₹12,700 in Tamil Nadu against ₹12,800 quoted last week.

However, due to lower copra arrivals, the prices fell to ₹9,300 per quintal in Kerala (₹9,600) and ₹9,200 (₹9,300) in Tamil Nadu. A good demand was noticed for fair quality copra at higher prices (₹3/kg) especially from oil millers and corporates.

Though the prices are ruling steady, Bharat Khona, former board member, said that upcountry buyers are not venturing into the market anticipating a price correction with the starting of the full-fledged season in both the states.

CDB officials attributed the increased demand for tender coconuts in the wake of summer season as the reason for not reaching the expected level of coconut to copra processors. However, the officials said that the climatic conditions are conducive for making copra in major coconut growing states.

In view of the supply constraints being experienced by processing units, copra production is unlikely to improve at least for the next 2-3 months.

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