Coconut oil prices continue to rule firm both in Kerala and Tamil Nadu markets ahead of the Diwali festival season.
In Kerala, it ruled at Rs 94 a kg (Rs 90), while it touched Rs 90 in Tamil Nadu (Rs 85).
However, the price of milling copra is now witnessing a declining trend and trading at Rs 6,800 a quintal in Kerala (Rs 7,500) and it was Rs 6,600 in Tamil Nadu against Rs 7,300 quoted last week.
Prakash B. Rao, President, Cochin Oil Merchants Association (COMA), attributed the price decline to fresh arrivals of raw coconuts to Tamil Nadu and Kerala markets from Karnataka for milling purpose.
He said that prices of coconut oil are likely to witness a correction following the commencement of winter season in north India.
Palm oil prices had also started cooling down to Rs 59 and palm kernel oil stood at Rs 62 after hitting a high of Rs 64 last week.
Thalath Mahamood, Director, COMA, said that coconut oil prices are now ruling firm with no signs of let-up for the time being.
However, corporates are not showing any interest in buying at these levels resulting in large-scale copra stocking by traders.
Bharat N. Khona, former Board Member, COMA, pointed out that the speculative trend in the market has really affectedoutstation demand. The surge in prices has also affected local demand for coconut oil, he said.