Coconut oil prices ruled steady in Kerala markets the last week due to increased corporate buying. It ruled at Rs 66 a kg, the same as last week.
Mr Prakash B. Rao, Vice-President, Coconut Oil Merchants Association (COMA), told Business Line that the market was steady as corporate demand shifted from edible oils such as palm kernel and palm oil to coconut oil.
Earlier, corporates opted for these edible oils that are close substitutes of coconut oil. Due to lower prices, they have now shown interest in buying coconut oil. As long as prices of other edible oils stayed firm, chances of a dip in coconut oil prices remain dim, he said.
Bulk buying by corporates in the Tamil Nadu market has affected coconut oil arrivals in Kerala. The prices of coconut oil in Tamil Nadu ruled at Rs 64 a kg this week.
The prices of palm oil and palm kernel oil stood at Rs 65 and Rs 74 a kg, respectively, on account of weakening of the rupee against the dollar. The decreasing availability of these edible oils in the market also resulted in the price increase.
Copra prices ruled at Rs 4,600 a quintal, Mr Rao said, adding that the government agencies had not yet started procurement.
At a time when prices of other edible oils are high, government agencies should immediately start copra procurement at a minimum support price of Rs 5,100 a quintal, Mr Thalath Mahamood, President, COMA, said.
The procurement would ensure that coconut farmers are getting fair prices, as it is the peak season for coconut. Though government agencies had made the announcement for copra procurement a month back, nothing had happened so far, he added.
However, Coconut Development Board officials said that the government agencies had started copra procurement a month ago at a minimum support price. As on today, both Kerafed and Marketfed have together procured 107 tonnes of copra. TANFED had also procured nearly 2,400 tonnes in Tamil Nadu, the officials said.