Coconut oil prices remained more or less steady in Kerala and Tamil Nadu this week. The prices are ruling at the same level quoted last week in both these states.
In Kerala, the prices quoted at Rs 61.50 per kg whereas in Tamil Nadu it stood at the last week level of Rs Rs 58 per kg.
Prakash B.Rao, Vice President, Cochin Oil Merchants Association (COMA) said that majority of the buyers are not active in the market at this low level, which is expected to sustain in the next couple of days. There is no major enquiry even from corporate buyers.
The cheaper availability of palm oil and palm kernel oil and the delay in copra procurement drive by Government agencies also contributed for sluggishness. There is a possibility that lower palm oil prices tend to put pressure on coconut oil prices and consumption may shift to lower priced oil, he said.
Palm oil prices are now trading at Rs 48 per kg while palm kernel oil at Rs 51 per kg.
Copra prices both in Kerala and Tamil Nadu also remained at the last week level of Rs 4,450 per quintal and Rs 4,300 per quintal respectively. Compared to Kerala, Tamil Nadu is having a good season both in production of nuts and copra arrivals, he said adding that the productivity level is declining in Kerala.
Thalath Mahamood, former President, Cochin Oil Merchants Association (COMA) said that the market is ruling in a steady line and witnessing a low demand. There is a need for a proper procurement drive for a further price rise in future, he said.
He requested the designated agencies not to waste time for starting procurement drive for the benefit of the coconut oil market.
Bharat N. Khona, former Board Member, COMA said that upcountry buyers and corporates may enter the market until and unless coconut oil prices comes to a stabilised level. However, it seems that imported edible oils, which are available cheaper, has taken over coconut oil market, he said.