Given the continuous fall in coconut oil and copra prices, the Coconut Development Board has clarified that the price drop is temporary.
At a time when increased inquiries are coming up on products such as virgin coconut oil, desiccated coconut and Neera sugar, it is expected that the price of coconut and its value added products will not fall further.
According to Board officials, there has been no decrease in the domestic consumption and a 20 per cent increase in the export of coconut products in the first quarter of 2014-2015.
Quoting a study conducted on nine Indian states, the Board said that there will not be a steady increase in coconut production in 2014-2015. Since it is off-season in the major coconut producing states, it is expected that there would not be much produce hitting the market till March 2015.
Meanwhile the coconut oil market continues to witness a declining trend this week both in Kerala and Tamil Nadu, with prices quoting ₹12,700 and ₹12,800 per quintal respectively. Copra prices also dropped to 8,500 per quintal in Kerala and ₹8,000 in Tamil Nadu.
Thalath Mahmood, Director, Cochin Oil Merchants Association (COMA) said that there was a buying trend after continuous fall in the last two weeks. However, this will not sustain and the prices are expected to drop further in the coming days. The adulteration of coconut oil is rampant in Kerala and the association is planning to meet the State Chief Minister with a request to take stringent action in this regard, he said.
However, Bharat Khona, former Board Member, COMA was of the view that the market is witnessing a speculative tone and a sudden spurt in prices today, is due to an unusual corporate buying, which is unlikely to sustain. The loose oil market in Tamil Nadu has shot up to ₹1,950 for 15 kg from the last week level of ₹1,650.