Coconut oil prices continued to decline this week in Kerala and Tamil Nadu, with prices quoting ₹12,700 and ₹12,800 a quintal, respectively.
Copra prices dropped to ₹8,500 in Kerala and ₹8,000 in Tamil Nadu.
Thalath Mahmood, Director, Cochin Oil Merchants Association, said that buying has emerged after continuous fall in the last two weeks.
However, this will not sustain and prices are expected to drop further in the coming days.
Bharat Khona, former Board Member, COMA, was of the view that the market is witnessing speculation and a sudden spurt in prices is due to an unusual corporate buying, which is unlikely to sustain.
The loose oil market in Tamil Nadu has shot up to ₹1,950 for 15 kg from the last week level of ₹1,650. Given the continuous fall in coconut oil and copra prices, the Coconut Development Board has said that the price drop is temporary. At a time when enquiries are increasing for products such as virgin coconut oil, desiccated coconut and Neera sugar, it is expected that the price of coconut and its value-added products will not fall further.
According to Board officials, there has been no decrease in the domestic consumption.
There is a 20 per cent increase in the export of coconut products in the first quarter of 2014-15.