Coconut oil markets in Kerala and Tamil Nadu are still bearish, due to liquidation of copra by stockists.
Prakash B. Rao, Vice-President, Cochin Oil Merchants Association, said that this has resulted in the decline in prices in both markets this week.
The market is witnessing a selling trend at Rs 65 for a kg in Kerala (Rs 67) and Rs 63 in Tamil Nadu (Rs 64). Copra prices ruled stable at Rs 4,700 a quintal in Kerala and Rs 4,600 in Tamil Nadu, up by Rs 100 from last week.
The rates are expected to drop further in the coming weeks on anticipation of the commencement of the new season in North Kerala, especially in Kannur and Kasargod districts, he said.
New arrivals of copra have started in these two districts that will further keep prices low, he said.
Other edible oils such as palm oil and palm kernel oil remained at the same level last week at Rs 52 and Rs 53/kg respectively.
Thalath Mahamood, former President of the association, said that the market is passive and witnessing a selling trend. Prices are likely to decline due to more arrivals of copra. Besides, the two-day all-India strike by trade unions will affect the market operations especially in Kerala than in Tamil Nadu.
Bharat N. Khona, former Board Member, COMA, expected the decline in price to continue in the coming weeks due to absence of corporate demand and low prices of other edible oils.
The market may face some more difficulties next month on account of financial year ending which leads to stock taking and payment of various taxes.