Declining coconut oil prices haven’t cheered up corporate and upcountry buyers as a majority of them are still staying away, anticipating further correction in prices.

Thalath Mahmood, Director, Cochin Oil Merchants Association (COMA), said corporate buyers are procuring only on a limited scale at a time when the market is flooded with copra. He said the onset of monsoon in Kerala might not impact arrivals, as there are several alternative methods now for drying using power and gas.

Steady going

The market, which registered a fall of ₹200 per quintal in the last few days, is steady this week without showing any price fluctuation. The price in Kerala is ₹12,000 per quintal against ₹12,200, while in Tamil Nadu it was ₹11,500 last week.

Increased copra availability dented prices to ₹8,200 per quintal in Kerala (₹8,400); it was ₹8,000 in Tamil Nadu, as quoted last week.

However, Sunny Francis of KLF Nirmal Industries attributed the low demand for coconut oil to the starting of sowing activities in most parts of North India during June-July season.

Demand concern

According to him, the price decline is definitely a concern for the coconut oil industry, as it will move consumers away from the local market due to low demand. Hence, it will be ideal for the market to settle in the ₹10,000-11,000 range; otherwise farmers will neglect coconut farming due to low-price realisation for their produce.

Bharat Khona, former board member of COMA, said prices seem to have stabilised for the time being with local millers in Tamil Nadu venturing into the market. This was reflected in the loose oil market which went up to ₹1,750 for 15 kg from ₹1,700.

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