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A sign for the onset of monsoon has revived the coconut oil market with prices firming up in Kerala and Tamil Nadu this week.
Prices in Kerala are ruling at Rs 63/kg against the earlier level of Rs 61 and in Tamil Nadu, it touched Rs 60 against Rs 58 quoted in the previous week.
Prakash B.Rao, Vice-President, Cochin Oil Merchants Association (COMA) said that the advancement of monsoon to the Kerala coast would likely to lead a shortage of raw nuts in the terminal markets. Traders are anticipating a rally in the prices in the coming days if the monsoon further advances, he said.
However, lack of interest shown by corporate buyers for large scale buying is a major concern for the industry. He said purchase of coconut in bulk will definitely boost up market sentiments.
Edible oils such as palm oil and palm kernel oil also firmed up this week at Rs 53 a kg and Rs 52 a kg respectively.
Thalath Mahamood, former President, COMA, said that though the prices had started perking up, there is no buying demand. However, the market is witnessing a sign of recovery especially due to the present climatic conditions prevailing in the State.
He pointed out that soap manufacturers, biscuit makers are still depending on palm kernel oil due to its low prices. This has affected the demand.
Bharat N.Khona, former Board Member, COMA, said that the market is slowly going up but at the same time there is no upcountry demand at higher levels.
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