Solvent extraction units have found a way out to overcome the ban imposed by the Centre on copra imports.

They are now importing coconut oil cake from the Philippines and Indonesia and extracting oil from it. This solvent extracted coconut oil has begun to eat into coconut oil demand in Kerala and Tamil Nadu.

Deodorised coconut oil is produced by the extraction units and it is available in the market along with coconut oil extracted from copra. This has begun affecting sales of coconut oil extracted from copra, said Thalath Mahmood, Director, Cochin Oil Merchants Association said.

This new trend coupled with low copra arrivals and absence of a strong local as well as upcountry demand has all contributed for a fall in prices this week.

Coconut oil is now ruling at ₹15,000/quintal in Kerala, while it quoted at ₹14,500 in Tamil Nadu. Copra prices also were down at ₹10,400 in Kerala, while they ruled at ₹9,800 in Tamil Nadu. Our Erode correspondent reports: Coconut oil prices plummeted as there was total lack of buyers in Erode.

“Coconut oil prices had increased to a record; but now they have dropped to ₹2,130-2,150 for a 15-kg in loose form. This is about ₹80-100 lower than last week,” said RM Palanisamy, an oil trader.

He said buyers in North India and other places, expecting a further drop by the week-end, did not place any orders. Even millers in Kerala who buy coconut oil from Tamil Nadu aren’t placing any orders. But oil crushers are still hopeful of an increase in price post Diwali.

Copra prices have also dropped sharply. On Wednesday, it sold at ₹10,200-10,300 a quintal and arrival of copra increased. But sales were very poor.

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