Cochin Oil Merchants Association (COMA) has voiced concern over the blending of solvent extracted oil with coconut oil, saying that the current price variations in coconut oil in Tamil Nadu compared to Kerala market is an indication towards the emerging scenario.

Thalath Mahmood, President, COMA, said coconut oil price in Kerala is in the range of ₹144/kg, while it was quoted at ₹127/kg in Tamil Nadu. When copra prices are hovering at ₹92.50/kg in the neighbouring State, it is hard to sell oil in this price range considering production parameters such as labour, power, copra extraction and transportation costs. There has been widespread blending of solvent extracted oil with coconut oil in Tamil Nadu and the authorities concerned should clarify whether such blended oils can be used as edible oil, he told Business Line .

It is pointed out that solvent extraction units are importing oil cakes under OGL for industrial purpose from Indonesia and Malaysia, which has 11-12 per cent oil content compared to 5-6 per cent of domestic oil cakes. These extracted oils will be mixed with coconut oil and marketed at cheaper rates, which is affecting small-scale coconut production units. The de-oiled cake is converted into cattle feeds, he said.

It is the lower prices of copra cake in the international markets at ₹14,000/tonne that prompts the solvent extraction units to import the commodity for cattle feed production. The domestic price is ₹22,000/tonne. The import prices of copra are also on the lower side at $400/tonne as against $1,400 in the domestic market, official sources said.

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