Commodities

Coconut oil prices remain stable

Our Bureau Kochi Jan. 20 | Updated on January 25, 2011 Published on January 25, 2011

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Unlike the recent spurt, coconut oil prices are ruling relatively stable. While prices slipped in Kerala markets slightly to Rs 90 from Rs 91.50 a kg last week, prices in Tamil Nadu remained steady at Rs 89 a kg.

The declining price trend was arrested by renewed interest by corporate houses for both copra and coconut oil.

With the onset of spring just around the corner in North India, fresh industrial demand has surfaced from cosmetic and personal care producers who use fair amount of coconut oil in their products. The fresh demand for coconut oil-based cosmetic and personal care products is expected to commence shortly for which the industrial houses have started stocking raw materials and streamlining their production capacity.

Buying support

The volumes bought by the big industrial houses are quite substantial and the entry of any one of them could bolster the markets, trade sources said. Shalimar and Marico are some the biggest industrial buyers of copra, while Dabur India and Damani are the large industrial buyers of coconut oil.

The buying support given by KERAFED has also ensured the price of copra remaining stable in the Kerala markets, Mr Prakash B. Rao, Director of Cochin Oil Merchants Association, said. Copra price remained stable at Rs 64 a kg at most of the producing centres in South India.

Palm oil price has declined to around Rs 57.50 a kg, while palm kernel oil prices continued to hover around Rs 93 a kg. The high price of palm oil and palm kernel oil continues to lend support to the coconut oil market. The strength of the coconut oil market is likely to be sustained until the onset of the peak coconut production season set to commence 4-5 weeks from now, trade sources said.

Retail coconut oil, in both the pouch and bottled form, continues to sell at the Rs 100 a litre mark. The major profit margin for the retailers comes from the approximately 100 gm difference in the kg and litre measure.

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Published on January 25, 2011
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