The Cochin Oil Merchants' Association (COMA) has raised its concern over coconut oil imports, saying it will adversely affect farmers and lead to a price crash.
Reacting to reports that a Mumbai-based FMCG company had started importing coconut oil from Indonesia, Thalath Mahmood, Director, COMA, wondered how this firm had received the licence at a time when the State Trading Corporation has the exclusive right to import coconut oil and copra.
The FMCG company dealing in coconut oil products had already imported more than 8,000 tonnes during December and January through Mundra Port at a landed price of ₹83 per kg. The unprecedented price rise in the last 14 months had forced the company to go in for imports.
As per official figures, the domestic coconut oil production was to the tune of five lakh tonnes per year with a majority allocated for domestic consumption. However, the production in the last couple of years has been stagnated due to agro-climatic conditions like drought, heavy rains, natural calamities etc.
Meanwhile, the coconut oil market in Kerala and Tamil Nadu is in a steady line this week with the prices quoting at ₹13,800 per quintal and ₹13,400 per quintal, respectively. Copra prices also quoted at the same level last week at ₹9,800 per quintal in Kerala and ₹9,600 in Tamil Nadu.
According to Mahmood, copra arrivals have been affected due to yesterday’s Hartal in Kerala and it is likely to improve in the next few days.
Quoting field reports, Mahmood expressed hope that there would be a 15-20 per cent increase in production both in Kerala and Tamil Nadu in this coconut season. This, he said, would help stabilise prices in the range of ₹80-100 for coconut oil and ₹70-80 for copra.
Endorsing a similar view that imports may lead to price crash, Bharat Khona, former Board Member, said that corproates as well as the upcountry buyers will stay away the market unless the prices come to an affordable level.