Trading has not resumed to the full extent at the coconut oil market in Kerala after Onam holidays.
Coconut oil prices were ruling at Rs 60 per kg in Kerala and Rs 58 in Tamil Nadu. Similarly, copra prices were ruling at Rs 4,250 per quintal in Kerala and Rs 3,900 per quintal in Tamil Nadu.
Palm oil prices were quoted at Rs 61 per kg, while palm kernel oil have gone up to Rs 58 per kg, an increase of Rs 4 quoted two weeks ago.
According to Prakash B. Rao, Vice-President, Coconut Oil Merchants Association (COMA), supply of copra and coconut oil continuous to be good in Tamil Nadu and Kerala.
On the other hand, demand remains sluggish but the higher prices of palm oil and palm kernel oil are supporting the market.
Referring to Onam sales, he said the demand for coconut oil was low compared to last year. Lot of copra stocks have piled up with traders particularly in Tamil Nadu. However, traders are pinning their hopes on the ensuing Diwali season.
Thalath Mahamood, President, COMA, pointed out that liberal import of edible oils like palm oil and palm kernel oil in the North Indian markets is depressing the coconut oil market. Higher availability and cheaper prices of edible oil decrease the demand for coconut oil especially for industrial purposes.
The association, he said, has requested the Coconut Development Board to impress upon the Central Government on the need to reduce the imports of edible oils and revoke the ban on coconut oil exports to arrest the fall in the prices of coconut oil.
Bharat N. Khona, former Board Member, COMA, said that though the market is ruling steady, sentiments are weak among corporate and upcountry buyers.
Due to lack of demand, the market may slide down in the short-term. However, the future of the market seems good with the revival of monsoon in North India.