Comments
Coconut oil prices are inching back to Rs 100 levels in the Kerala market even as Tamil Nadu prices are trailing by just couple of rupees lower at Rs 98.
“It is mainly the Onam demand that is spurring market to the new highs,” Mr Prakash B. Rao, Member of the Cochin Oil Merchants Association (COMA), said.
As prices have spurted, upcountry demand has begun to languish. However, the demand from corporates has been steady as the offtake for coconut oil-based hair oils and other cosmetic products has resumed.
The demand from Kerala remains high as most of the marketing companies are buying and packing coconut oil for the retail market, into one-and-half litre pouches for sale during the Onam season.
However, there is some concern among Kerala traders that the price of palm kernel oil and palm oil is far lower than that of coconut oil. Palm kernel oil was quoting at Rs 80, while palm oil at Rs 60.
The wide price difference between palm oil and coconut oil, as much as Rs 40 a kg, is likely to prove an incentive for adulteration, they warned.
Despite the onset of fair weather over Kerala during last week, there is virtually no physical production and conversion of copra into coconut oil in the State.
But like every year, there is bound to be increased availability of coconut oil on account of excess stocking by traders and marketers for Onam. With demand from Kerala poised to wane after Onam, coconut oil prices are also expected to dip.
The post-Onam festival demand for Dasara and Diwali are mainly for edible copra and not for coconut oil and would impact the market only marginally. But the industrial demand is likely to be sustained as the demand for coconut oil-based hair oil and cosmetic products will be strong until the onset of the winter months.
Coconut production from Andhra Pradesh is also not expected to be very substantive this year as large number coconut trees along the coast were damaged due to a cyclonic storm last year, which also wrecked havoc in the major coconut trading costal township of Ambajipeta.
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.