The coconut oil market in Kerala and Tamil Nadu is still in a bearish mode due to the liquidation of copra by stockists.
Prakash B. Rao, Vice-President, Cochin Oil Merchants’ Association (COMA), said this has resulted in a decline in prices in both the markets this week.
The market, he said, is witnessing a selling trend and trading at Rs 65 per kg in Kerala (Rs 67) and Rs 63 in Tamil Nadu (Rs 64). While copra prices remained at the same level of Rs 4,700 per quintal in Kerala and Rs 4,600 in Tamil Nadu, up by Rs 100 quoted last week.
The rates are expected to come down further in the coming weeks in anticipation of the commencement of the new season in North Kerala, especially in Kannur and Kasargod districts, he said.
New arrivals of copra have been reported from these two districts, which would continue to keep prices low, he added.
Other edible oils such as palm oil and palm kernel oil remained at last week's level of Rs 52 and Rs 53 for a kg respectively.
Thalath Mahamood, former President, COMA said the market is passive and witnessing a selling trend. The prices are likely to decline further due to additional arrivals of copra following the start of the season. Besides, the two-day all-India strike by trade unions would affect market operations, more so in Kerala than in Tamil Nadu.
He reiterated that the Government should take effective measures to ensure a proper copra procurement drive to stabilise the market.
Bharat N. Khona, former Board Member, COMA, expected the decline in prices to continue in the coming weeks due to absence of corporate demand and low prices of other edible oils. The market may face some difficulties next month on account of the financial year ending, which leads to stock taking and payment of various taxes.