Comments
In April this year, coconut oil prices were ruling at a discount to crude palm oil in the global market.
Then, coconut oil ruled at $793 a tonne and crude palm oil at $800 a tonne.
But now, coconut oil prices are quoted at about $900 against $721 for crude palm oil.
In India, coconut oil prices have increased from Rs 61 a kg in April to Rs 78 now.
Prices of copra, from which coconut oil is derived, have increased to Rs 5,500 a quintal from Rs 4,200 in April.
During the same time, palm oil prices have ruled almost unchanged at Rs 55 a kg.
“The current premium that coconut oil enjoys over palm oil is not justified. It has to drop along with other oils,” said Dorab Mistry, Director, Godrej International, at a global vegetable oil conference in Mumbai on Sunday.
According to Thomas Mielke, Editor-in-Chief, Oil World , coconut oil began to rise after the Philippines announced that it would increase the use of coconut oil as a bio-fuel.
In July, it began holding trials of running vehicles with five per cent blend of coconut oil with diesel.
Earlier, vehicles in that country were running with two per cent coconut oil blended with diesel.
The Benigno Aquino Government on September 20 said it has sought comments from the stakeholders.
The B5 or five per cent coconut oil blended diesel may be implemented before the year-end.
The Philippines had passed a Bio-fuels Act in 2006 making it compulsory to blend coconut methyl ester in diesel distributed locally.
It was aimed at making the country less dependent on fossil fuel.
Besides, it has abundant sources of alternative energy such as coconut oil.
In 2012, the Philippines exported 8.5 lakh tonnes of coconut oil.
This year, coconut oil exports from the Philippines increased to 10.23 lakh tonnes during January-May, more than double during the same period a year ago.
Exports have increased mainly because buyers feared they could be caught short by the increased use of coconut oil for bio-fuel.
“Coconut oil prices are surging since some buyers feel that they are not adequately covered in case of any shortage.
“But with the current peak production season on, we have to see how the seasonal support for it is,” said Mielke.
subramani.mancombu@thehindu.co.in
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.