As fickle rains persist over the coconut-growing regions in Kerala and Tamil Nadu, coconut oil prices continue to reign high. With intermittent rains, most coconut farmers in Tamil Nadu are delaying harvest for want of suitable warm and dry conditions for copra, before converting it into coconut oil. The Malabar region, the most productive area for coconut production of Kerala, is also beset with rain, which is hampering production.

Coconut oil rules at Rs 98 a kg in both Tamil Nadu and Kerala markets. Similarly, copra is quoted at Rs 67 a kg in these prime coconut oil markets. Taking a cue from the steady price of coconut oil, the price of competing edible oils such as palm oil (Rs 58/kg) and palm kernel oil (Rs 90/kg) are also ruling firm.

While Kerala remains the biggest producer and consumer of coconut and coconut oil in the country, Tamil Nadu has been catching up fast in production. Kerala, Tamil Nadu and Karnataka account for over 85 per cent of the country's total coconut production. While Kerala is in the lead accounting for 37 per cent of the country's total coconut production, it is closely followed by Tami Nadu with 34 per cent and Karnataka with 14 per cent.

While the latest figures available from the Coconut Development Board are for 2008-09, trade sources say that an update could paint a different picture. While Kerala has more aged coconut trees with low productivity, not only do areas in Tamil Nadu have younger and far most productive trees, but the area under fresh coconut saplings are fast increasing in that State.

Even though Tamil Nadu does not have a history of large scale consumption of coconut and coconut oil as part of its diet, all seems to be changing these days.

The industrial demand is also more centred around Tamil Nadu. Finally, the demand from Kerala is more than its domestic production and the State depends on Tamil Nadu to meet part of its demands.

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