Coconut oil prices remained more or less steady in Kerala markets this week. Prices were Rs 64 a kg against last week's Rs 66.
Mr Prakash B.Rao, Vice-President of the Coconut Oil Merchant Association (COMA), told Business Line that corporate buying in coconut oil continues to remain good during this week. This is one of the reasons for the steady market price for coconut oil, he said.
Supplies are increasing from Tamil Nadu and it could put selling pressure on the market. If the corporate buying slows down, prices are likely to decline further. However, he expected prices to sustain at the same levels next two weeks also.
Prices of coconut oil in Tamil Nadu are ruling at Rs 62 a kg this week.
Prices of palm oil and palm kernel oil also ruling more or less at Rs 66 and Rs 74 a kg respectively. Arrival of these edible oils in the domestic market is low and this has resulted prices ruling steady compared with last week, he said.
Referring to copra, he said prices ruled at Rs 4,400 a quintal in Kerala market and Rs 4,200 in Tamil Nadu.
Mr Thalath Mahamood, President of COMA, said that the relative lower prices for coconut oil is prompting some traders to adulterate it with other costly edible oils particularly in Tamil Nadu. This kind of adulteration is happening for edible oils targeted north Indian markets.
Traders have begun stocking coconut oil in bulk before the onset of monsoon when they expect the supply to decline, he said.