The Coconut Development Board has sought a ban on palm oil import in view of the steep fall in coconut oil prices.
The Board asked the State Government to impress upon on the Union Commerce Ministry to restrict or introduce a total ban on the import of palm oil through south Indian ports. The CDB also urged the Union Government to provide incentives for the export of coconut oil.
Senior officials said that palm oil is the major competitor for coconut oil in the State. Coconut oil is used as edible oil in Kerala and neighbouring regions of Tamil Nadu. Therefore, a ban on the import of palm oil through the southern ports will lead to an increased demand for coconut oil.
The CDB also urged the Chief Minister to put pressure on the Union Government to lift the quantity restriction on the export of coconut oil and to allow bulk packing in south Indian ports.
According to statistics available with the CDB, import of refined oil (RBD palmolein) during November-May increased by 97 per cent and touched 10,84,033 tonnes compared with 5,51,327 tonnes in the previous year. During the same period, crude palm kernel oil import increased by 82 per cent, and crude palm oil by 14 per cent.
However, coconut oil export is limited to a maximum of 10,000 tonnes. Such a restricted quantity can only be exported in branded consumer packs up to 5 kg each.
Since domestic as well as international prices are almost at a par with each other, the export market is competitive for coconut oil. The huge ethnic population of south Indian people in the West Asian countries is another advantage. Currently, they are catered by coconut oil from Sri Lanka and the Philippines, the officials added.