Local demand on account of Christmas lifted coconut oil prices to a new high both in Kerala and Tamil Nadu, registering an increase of over ₹300 per quintal.
The prices in Kerala surged to ₹12,950 per quintal (₹12,600), while in Tamil Nadu it went up to ₹12,500 per quintal against the last week level of ₹12,200. Copra prices also scaled new heights at ₹9,500 per quintal in Kerala against ₹9,200 and ₹9,000 in Tamil Nadu from the last week level of ₹8,800.
Bharat Khona, former Board Member said that there has been no genuine demand either from corporates or from upcountry buyers at this price level and the increase was on account of speculative buying.
According to Thalath Mahmood, Director, Cochin Oil Merchants Association (COMA), the price increase is a temporary phenomenon due to local consumer demand. It is expected to come down in the next couple of weeks with the commencement of the season in the New Year, which witness good arrivals.
To curb the arrival of adulterated oil, he said COMA recommended to the State Finance Minister to impose an entry tax for coconut oil coming from neighbouring states. The government also assured COMA to look into issues the directive of Food Safety and Standards Authority’s against selling loose coconut oil. The drive against selling loose coconut oil will hit several small oil mills hard.