Higher copra arrivals to impact coconut oil prices

Coconut oil market in Kerala is witnessing increased arrivals of Lakshadweep copra, which is known for its quality and high oil content.

The starting of harvest season in the islands paved the way for its bulk arrival to Kerala market utilising the port facilities in Beypore and Mangalore. The commodity will be graded in these ports. The edible copra being despatched to North Indian markets, while the milling copra, which finds increased takers, will be moved to Kerala and Tamil Nadu, Thalath Mahmood, Director, Cochin Oil Merchants Association (COMA) said. 

The price of the commodity is ₹3-4 higher compared to other available copra in the market. There is high demand among traders because of its higher oil content, about 70 per cent for one kg vis a vis 64 per cent of oil extracted from other local grades. The market considers Lakshadweep copra as a matured one due to its peculiar advantage of having grown on the seaside, he said.

With the harvest season in Lakshadweep expected to continue for the next six months, he said the market is likely to witness good arrivals from the islands.

Meanwhile, the festival demand ahead of Easter and Vishu in Kerala next month revived the market with traders started stocking coconut oil in large quantities. However, the prices remained more or less steady this week in Kerala and Tamil Nadu quoting ₹13,500 per quintal and ₹13,300 respectively.

Increased copra arrivals impacted the prices, which is ruling at ₹9,800 both in Kerala and Tamil Nadu, he said. 

However, Bharat Khona, former COMA board member, was of the view that a speculative trend in the coconut oil rates was ruling the market, affecting the prices locally. The upcountry buyers have stayed away from the market, anticipating a price correction shortly. 

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