Coconut oil prices touched a record high of Rs 105 a kg in Kerala this week on tight supplies.

Prakash B. Rao, President, Cochin Oil Merchants Association, said that due to continuous rise in prices on a daily basis in the last one week, traders and manufacturers have started buying copra at premium prices from Rs 72 to Rs 76 a kg.

While in Tamil Nadu, prices of coconut oil was quoting at Rs 99 per kg and copra at Rs 73 a kg. He said that prices of both coconut oil and copra were moving up on a daily basis since last one week due to tight supply. Major corporates have increased their copra purchase prices on bullish outlook for the next two weeks.

According to Rao, prices are likely to remain stable at this range for the short term. He also cited the ensuing Sabarimala pilgrim season would scale up the demand for raw coconuts which may further lead to a rise in coconut oil prices.

Imported oils were also ruling high on weak rupee. Palm oil prices touched Rs 65 a kg against Rs 60 quoted last week and palm kernel oil at Rs 78 per kg against the last week price of Rs 72.

Thalath Mahmood, Director, COMA, said that the market is witnessing a tight supply on low arrivals due to off season. The surge in prices also dampened domestic consumption.

However, he warned that the price increase may lead to flooding of adulterated coconut oil in the Kerala market from Tamil Nadu which was under control following strict monitoring by Food Safety officials at border check posts from Onam season.

According to Bharat N. Khona, former Board Member, COMA, shortage of copra and tight supply spurted the prices and this may continue for the short term. At this price rise, corporates and upcountry buyers will not venture into the market. This has also led to more edible oil consumption in the domestic market, he added.

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