Coconut oil market continued to witness upward trend both in Kerala and Tamil Nadu markets for the third consecutive week.

The prices in Kerala were ruling at Rs 66.50 a kg (Rs 66) while in Tamil Nadu, it stood at Rs 65 (Rs 62.50).  

The copra market also remained more or less the same quoting at Rs 4,700 per quintal in Kerala (Rs 4,800) and Rs 4,500 in Tamil Nadu (Rs 4,600).

Bharat N. Khona, former Board Member, COMA, pointed out that the coconut oil market is expected to stabilise at the prevailing rates in the short term as copra arrivals was weak due to off-season. With the low pricing in other edible oils such as palm oil and palm kernel oil, he said upcountry buyers and corporates are not keen in the market. 

The palm oil prices are ruling at Rs 51 a kg (Rs 54) and palm kernel oil at the same rate of Rs 53 quoted last week, he said.

Thalath Mahamood, former President, COMA, said the copra market is witnessing a buying trend, which is the reason for coconut oil market ruling steady. Besides, there is a good demand for raw coconuts in Tamil Nadu due to bulk procurement by desiccated coconut powder companies.

It would be difficult to predict the market now since palm oil and palm kernel oil prices are ruling low. This may lead to adulteration of coconut oil with palm kernel oil, which may affect the price rally, he said.

The movement of edible copra and raw coconut in bulk to North India and Pakistan markets can also be attributed for the price rally, he added. 

Production season is at the fag-end in Kerala and expected to remain low till March, he said.

Meanwhile, the Kerala Government is in the process of commencing procurement of coconuts from farmers soon. Efforts are also on to establish a network of dryers to convert the procured coconuts into copra.

The decision to procure coconuts instead of copra was taken due to the lack of facilities for drying at the local level. The processing of procured coconuts was expected to commence by January with the support from Nafed, Warehousing Corporation, cooperatives and the Agriculture department, officials said.  

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