Unwinding of stocks has resulted in fall in prices of coconut oil as well as copra both in Kerala and Tamil Nadu this week.

In Kerala, coconut oil is currently trading at Rs 59 per kg from Rs 60 in the previous week, whereas in Tamil Nadu, it has come down to Rs 55 from Rs 57.

Prakash B. Rao, Vice President, Coconut Oil Merchants’ Association (COMA), pointed out that the market sentiment is very weak due to lack of demand from upcountry buyers.

He attributed the sudden fall in coconut oil prices due to drop in palm kernel oil, which had diverted industrial buyers from coconut oil. The market is also witnessing excess supply over demand.  

Besides, the Onam festival demand has not yet picked up in Kerala, which is a major concern for traders. Industry has a very little hope on the revival of the market during the festival season, he said.

Copra prices in Tamil Nadu have gone down to Rs 3,500 per quintal from Rs 3,800, while in Kerala, the prices are ruling at Rs 3,800 from the previous week’s Rs 4,000.

Palm oil prices are ruling at Rs 62 per kg, while palm kernel oil at Rs 54 per kg.

Thalath Mahamood, President, COMA, said that there has been uncertainty the market which has affected the sentiment. The market would remain weak unless the Government took some concrete measures for copra procurement, he said.

Bharat N. Khona, former Board Member, COMA said that the sentiments are weak among corporate buyers and upcountry buyers. This coupled with heavy arrivals of copra in Tamil Nadu markets has dampened the prospects of coconut oil prices this week. 

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