The availability of solvent extracted coconut oil has had an impact on genuine coconut oil both in the Kerala and Tamil Nadu markets.

Several solvent extractors are importing coconut oil cake from Indonesia and the Philippines to meet their requirement due to the ban on copra imports under OGL scheme.

Deodorised coconut oil is produced from this commodity. The presence of this deodorised coconut oil in the market along with genuine coconut oil has resulted in a drop in sales, Thalath Mahmood, Director, Cochin Oil Merchants’ Association (COMA), said.

This new trend coupled with low copra arrivals and the absence of strong local and upcountry demand have all contributed to a fall in prices this week. Consumers are now shifting to sunflower oil, which is cheaper, he said.

According to him, the market has started moving southwards, with prices continuing to slide both in Kerala and Tamil Nadu this week. Prices are now ruling at ₹15,000 per quintal in Kerala, whereas in Tamil Nadu it has stood at ₹14,500. Copra prices have also come down to ₹10,400 per quintal in Kerala, while the figure has touched ₹98,000 in Tamil Nadu, which was lower compared to last week.  

Bharat Khona, former Board Member of COMA, said the price variation for coconut oil in the Kochi market following the imposition of two prices under different categories, such as milling and trading oil by the association was strange and would confuse the consumer. The market, he said, is going in for a correction as is evident from loose oil prices in Tamil Nadu, which stood at ₹2,150 for 15 kg.  

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