The coconut oil market recovered from lower levels in Kerala and Tamil Nadu this week after witnessing a selling trend.
Prices in Kerala touched Rs 63 levels quoted last week after sliding to Rs 61 per kg in the last few days. In Tamil Nadu, it bounced back to Rs 60 after trading low at Rs 58.50 per kg. Prices quoted at Tamil Nadu last week was Rs 60.
Prakash B. Rao, Vice-President, Cochin Oil Merchants Association (COMA), cited bottom level buying from traders coupled with slight demand for edible copra from North Indian markets as the reasons for the recovery.
Prices, he said, are expected to be more or less steady in the coming days due to holding of more quantity at these levels on the expectations of better crops (raw nuts and conversion of copra).
Copra prices are ruling at Rs 4,400 per quintal in Kerala (Rs 4,500) and Rs 4,300 per quintal in Tamil Nadu (Rs 4,350).
The other edible oils such as palm oil and palm kernel oil remained at the same level quoted last week at Rs 52 and Rs 53 per kg respectively. Piling up of edible oil stocks with large scale importers was the reason for the prices remaining stagnant, he added.
Thalath Mahamood, former President, COMA, said that the market is witnessing a selling trend with traders in Tamil Nadu started liquidating copra due to new arrivals. The validity of stocking copra is three months and after that there would be changes in specification affecting the quality.
He also reiterated the demand to intensify copra procurement by government agencies to get a better price for the raw material.
Bharat N.Khona , former Board Member, COMA was of the view that the market is showing an upward trend in spite of demand from corporates and upcountry buyers, which is unprecedented.
On the reports of adulterated coconut oil from Tamil Nadu to Kerala, Rao said though COMA had taken up the issue with the authorities on several occasions all are in vain.
However, the association now urged to take up the matter more seriously to help the industry and farmers to get a better price.
Meanwhile, the Food Safety authorities said that they had collected several samples of coconut oil from traders in Kochi, Kozhikode and Thiruvananthapuram and sent it for testing in NABL accredited labs. Further action will be taken based on the reports from the labs.
A senior official in Kerafed said that they had taken up the adulteration issue with the authorities concerned as it is difficult to meet the competition due to selling of certain brands below the market price.