Traders are keeping their fingers crossed over the upward trend in coconut oil prices in the Kerala and Tamil Nadu markets this week.
Prices in the Tamil Nadu market have touched an all-time high of ₹150 per kg (₹130), whereas in Kerala it stood at ₹140 per kg against ₹129 quoted last week. Copra prices also joined the rally, quoting at ₹104 per kg in Tamil Nadu (₹93) and ₹102 in Kerala (₹94).
Thalath Mahmood, Director, COMA, attributed the price rise to low production and high consumer demand. There was a production drop of 50 per cent in certain coconut growing areas of Kerala due to a drought-like situation. This, coupled with additional exports of raw nuts to Pakistan by traders in Mumbai and the conversion of coconuts to other value-added products, have resulted in the shortage of copra.
He expressed the hope that the market would revive after Vishu and the Easter festival season.
A section of traders expressed apprehensions about the possible adulteration of coconut oil with palm kernel oil taking into account the price hike of this particular edible oil at ₹104 per kg this week. Palm kernel oil is a close substitute of coconut oil and is widely used for making detergent products.
Bharat N. Khona, former board member, Cochin Oil Merchants’ Association (COMA), said there was subdued demand from upcountry and corporate buyers at this price range and domestic consumption has slowly started shifting to other cheap edible oils.