Weak copra arrivals coupled with good consumer demand spurted coconut oil prices to a new yearly high in the Kerala and Tamil Nadu markets this week. A strong corporate buying also drove copra prices to a new height.  

According to Prakash B. Rao, Vice-President, Cochin Oil Merchants Association (COMA), coconut oil prices touched a new yearly high of Rs 76 per kg in Kerala (Rs 71), whereas in Tamil Nadu, traders were quoting Rs 73 a kg against Rs 68 quoted last week.  

Similarly copra prices too inched up Rs 5,600 per quintal in Kerala (Rs 5,200), while in Tamil Nadu, the prices went up to Rs 5,500 per quintal against Rs 5,000 quoted last week.

Rao attributed the firming up of copra prices mainly to large-scale procurement by corporates due to the forthcoming festival season. Due to this, the market is witnessing a bullish mood and the prices are likely to firm up in the coming days, he said.

Elsewhere imported edible oils also firmed up on weaker rupee. Prices of palm oil shot up to Rs 63 per kg (Rs 56), while palm kernel oil went up to Rs 65 per kg (Rs 58).

Thalath Mahamood, former President, COMA, said that local demand ahead of Onam festival season in Kerala boosted the prices due to heavy buying. Local demand is likely to continue which would further result in a price increase.

There were also allegations over the quality of copra procured by the Government agencies especially in Kozhikode and Kasargod godowns. It is reported that majority of these poor quality commodities were non-edible and not good for the market, he said.

Bharat N.Khona, former Board Member, COMA, attributed the unprecedented spurt in prices to local demand ahead of festival season. The upcountry buyers and corporates may adopt and wait and watch for the market to stabilise.

Tamil Nadu loose market has shot up to Rs 1,100 for 15 kg against 1,020 quoted last week.

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