Speculative buying lifted copra prices in Kerala and Tamil Nadu this week, after a continuous fall in the last few quarters.
Copra prices touched ₹9,200 per quintal in Kerala against ₹8,500 quoted last week, while it went up to ₹8,800 in Tamil Nadu from last week's level of ₹8,000.
Bharat Khona, former Board Member, Cochin Oil Merchants Association (COMA), attributed the surge in prices to speculative buying by a leading corporate company engaged in branded coconut oil business. He said there was no genuine demand either from upcountry buyers or from other corporate companies.
Thalath Mahmood, Director, COMA, said that coconut oil market has registered a slight price drop in Kerala at ₹12,600 per quintal against ₹12,700 quoted last week. There was a ₹600 drop per quintal in Tamil Nadu at ₹12,200 against the last week level of ₹12,800.
According to him, there was no unusual trend in the market and the surge in copra prices was to due to the increase in local demand in connection with the Christmas season. He added that price increase will not sustain and the market is likely to come down in the absence of demand. At present, majority of the corproates have sufficient stock to meet their production requirements.
The availability of good quality copra from Kerala, Tamil Nadu, Karnataka with the commencement of the season is expected to revive the market in the New Year. Corporates are adopting a wait and watch for entering, he said.
The Kerala Chief Minister has assured the visiting delegation from COMA to look into issues like checking rampant adulteration of coconut oil and Food Safety and Standards Authority’s directive against selling loose coconut oil. The drive against selling loose coconut oil will hit several small oil mills in the state, he added.