Local demand ahead of Vishu has pushed up coconut oil prices a tad in Kerala and Tamil Nadu this week.
Thalath Mahamood, former President, Cochin Oil Merchants Association (COMA), said that the market may witness an upward trend on account of festival demand.
Moreover, the interest shown by corporate and upcountry buyers will signal a further movement in prices, he said.
Prices in Kerala stood at Rs 62/kg, while it was Rs 61.75 in Tamil Nadu.
Copra prices also moved upwards touching Rs 4,500 a quintal in Kerala and Rs 4,200 in Tamil Nadu. There has been a good demand for fresh copra stocks at the terminal markets, he said.
However, the absence of a proper procurement drive by the agencies concerned is affecting the market especially in Kerala as the season has already started in the State.
Tamil Nadu season will start from May and it requires a good procurement initiative to fetch better price for farmers, he added.
The other edible oils such as palm oil and palm kernel oil stood at Rs 51 a kg and Rs 55 a kg respectively. Bharat N. Khona, former Board Member, COMA, said that the market is showing a steady line due to the local demand and is expected to continue for the time being.
However, the availability of edible oils at cheaper rates is a concern for the coconut oil market and upcountry buyers and corporates are adopting a wait-and-watch approach.