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Prices of coconut oil and copra are likely to fall further unless some major buyers re-enter the market or there is a change in weather conditions in the State, according to the Coconut Oil Merchants Association (COMA).
Copra prices have already dipped to Rs 4,000 a quintal in Tamil Nadu against Rs 4,100 quoted last week. Prices in Kerala were ruling at Rs 4,200, against last week’s price of Rs 4,300 per quintal.
Mr Bharat N. Khona, former Board Member of COMA, said that higher arrivals of copra in Tamil Nadu had resulted in the price fall. Following the sudden spurt in stocks in the market, upcountry buyers as well as corporates are staying away from the market.
Higher arrivals of coconut in Kangayam and Vellakoil markets in Tamil Nadu and dry weather prevailing in Kerala cooled coconut oil prices in Kerala markets this week. Prices dipped to Rs 60 a kg in Tamil Nadu against last week’s Rs 63, whereas in Kerala prices fell to Rs 63, from Rs 65.
Mr Prakash B. Rao, Vice-President, Coconut Oil Merchants Association, said that prices witnessed a selling trend due to lack of demand in Kerala, a leading consumer State. There was a huge pile-up of stocks with major buyers, he said.
Arrival of substitute oils, such as palm oil and palm kernel oil, however, remained low. The prices were Rs 61 a kg for palm oil, against last week’s Rs 60, and palm kernel oil ruled static at of Rs 68 quoted last week.
Mr Thalath Mahamood, President, COMA, said the market is witnessing selling pressure. A majority of the farmers, he said, are reluctant to sell copra because of the stringent guidelines in the procurement policy, he said.
Procurement
When contacted, Mr T.K.Jose, Chairman, Coconut Development Board, said the Government allows copra procurement only from farmers and farmer cooperatives. He admitted that procurement in Kerala is not reaching the expected levels. However, the government agencies had already procured 2,600 tonnes in Kerala till June 22, he said.
The Board, he said, had recommended a higher MSP for copra procurement this year, which is Rs 4 a kg higher than the previous season. It had recommended procurement at Rs 56 a kg, against last year’s Rs 47.
The Commission for Agricultural Costs and Prices (CACP) accepted the prices at Rs 51 per kg. The Board is also working out a new recommendation from August, he said.
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