Coconut oil and copra prices increased at this week’s auction in Avalopoondurai market on fears that coconut production may be lower this year. But Kerala traders kept away, hoping that prices would soon begin to drop as alternatives such as palm oil and kernel are ruling low.

“Coconut oil price increased to Rs 1,400 for a 15-kg loose pack, up Rs 2 from last week,” said R.M. Palanisamy, a dealer. “Though coconut oil crushers hold a huge stock, sales were very low, as many buyers feel that prices may not improve further and the current trend could continue for at least two months,” he said.

Prices of palm oil and palm kernel remain low and, as usual, all the biscuit firms are patronising palm kernel. They have procured only a small quantity of coconut oil.

Meanwhile, copra farmers, who hold huge stocks, brought 1,079 quintals (2,158 bags) for sale to the Avalpoondurai market. Buyers from Kangeyam, Tuticorin and some other places in Tamil Nadu took part in the sale tender. But no coconut oil crusher from Kerala attended the sale, as they already have a huge stock of copra with them for crushing. Further, they are waiting for a price decrease.

Copra farmers feel that since coconut production is decreasing, prices will touch Rs 7,000 a quintal.

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