Copra prices have started increasing on lower arrivals in the wake of rains in several production centres under the influence of the North-East monsoon.
According to traders, the rise in prices has been in the range of around ₹5 in the past week to reach ₹83 per kg from the lowest level of ₹75, a fortnight ago. The hike was reflected in coconut oil prices as well, which is ruling at ₹130 in the wholesale market.
Ubais Ali of Mezhukkattil Mills said all the production centres in the South are experiencing heavy rains with the arrival of North East monsoon that impacted copra processing in several centres, hitting arrivals to the market. The rising trend is likely to continue for some more time till the rain subsides.
Thalath Mahmood, director of Cochin Oil Merchants Association (COMA) said Kangeyam in Tamil Nadu is a major copra processing centre and the downpour has affected the work. At the same time, there has been a subdued demand in the domestic market in the absence of a robust local purchase. The upcountry demand was also lower, especially in the just concluded Diwali season where there would normally get demand from North India.
Other oils too up
With the starting of the Sabarimala pilgrim season by mid-November, he said there will be more arrivals of copra from the hill shrine. But this particular commodity containing ghee can be used only for industrial purposes for making soaps, shampoos etc and not as an edible commodity.
K.K.Devraj, a business consultant in the industry said even though the demand from North India has not shown any significant improvement, the rains over the last week have pushed up copra prices. Palmolein prices have also increased by up to 10 per cent and sunflower oil by over 5 per cent during the last couple of weeks. These factors might have also given the market a positive trend. But with the upcoming North Kerala arrivals and the ensuing Sabarimala arrivals, it remains to be seen how long the price uptrend will last, he said.