FMCG major Marico has said that it has imported coconut oil in bulk quantities for re-export as value-added products.

According to Marico, the quantity of imports is negligible compared to domestic production and it will “neither impact the coconut farming community nor domestic production”.

Official figures put domestic production of coconut oil at five lakh tonnes a year.

“What we are importing is only an iota of local production and it will not have any bearing on local supplies or production,” said a company spokesperson said in response to a query from BusinessLine .

“We have been importing coconut oil for many years on the basis on exports of packaged coconut oil to neighbouring countries such as Bangladesh, West Asia and South-East Asia. With good production anticipated in Tamil Nadu and Kerala this year, we believe the availability in India itself will be good enough to meet domestic demand,” the spokesperson said.

According to the company, imports have doubled in the last quarter and it would be a requisite to match up the growth in demand for Marico products in overseas markets, considering the company’s emergence as a leading player in the global arena.

BusinessLine had reported that coconut oil was imported from Indonesia in bulk quantities since December last year. Official figure reveals that the company imported about 11,000 tonnes in December, January and February months.

Meanwhile, the coconut oil market in Kerala and Tamil Nadu started sliding this week. Prices have declined ₹400 a quintal following poor demand and new arrivals, especially with the commencement of the season .

Prices in Kerala have come down to ₹13,400 a quintal (₹13,800), while in Tamil Nadu, they quoted at ₹12,800 against ₹13,200. Copra prices have also started moving southwards ruling at ₹9,600 in Kerala (₹9,800) and ₹9,300 (₹9,700) in Tamil Nadu.

Thalath Mahmood, Director, Cochin Oil Merchants Association (COMA) said that prices are expected to fall further when the season will be in full swing from March, when the availability of copra at all producing centres surges.

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