Higher arrivals from Tamil Nadu resulted in coconut oil prices declining in Kerala markets this week. Prices were quoted at Rs 62 a kg against the last week's Rs 63.
Mr Prakash B.Rao, Vice-President of the Coconut Oil Merchant Association (COMA), said that corporates continued to stay away from the market and their buying was close to nil, especially during the last couple of days. They have built enough stocks in anticipation of copra procurement by government agencies.
Prices of coconut oil in Tamil Nadu ruled at Rs 59.50.
Mr Bharat N.Khona, former Board Member, COMA, cited non-availability of oil tankers for moving coconut oil for upcountry markets as the reason for lower demand. This, he said, has led to a situation of piling up of stocks. Prices will pick up slowly if the commodity starts moving once consumption resumes in north Indian markets, he said.
According to him, prices quoted this week are attractive as far as corporates are concerned. However, the disruption in movement has forced them to postpone their buying from the market, he said.
Prices of edible oil such as palm oil and palm kernel oil, which are close substitutes of coconut oil, are still on the higher side. Prices stood at Rs 70 and Rs 76, respectively this week, particularly due to fluctuations in the rupee.
Referring to copra, he said that prices ruled at Rs 4,200 a quintal in Kerala and Rs 4,000 in Tamil Nadu.
According to Mr Thalath Mahamood, President, COMA, copra arrivals in Kerala markets are on the higher side due to good production in Andhra Pradesh and Tamil Nadu. He said coconuts produced in Malabar area are being transported to Tamil Nadu for processing due to labour shortage in Kerala.