Speculative interest and good rains in the last couple of days have brought cheers to coconut oil in the Kerala market. The prices registered a marginal increase this week.

According to Prakash B. Rao, Vice-President, Coconut Oil Merchants Association (COMA), prices in Kerala had gone up to Rs 61 a kg from last week prices of Rs 60 a kg and in Tamil Nadu, it was Rs 58/kg.

Copra prices unchanged at Rs 4,200 a quintal in Kerala and Rs 3,800 in Tamil Nadu.

He said that the palm oil prices had come down to Rs 60/kg from Rs 61, while palm kernel oil down to Rs 56 from Rs 58 last week. The major reason for the drop was mainly due to increase in shipments of various edible oils and itsavailability, he said.

However, corporates did not show any interest for fresh purchase, he added.

Thalath Mahamood, President, COMA, said there has been a small buying trend because of low prices. However, traders are pinning their hopes on Diwali season next month, he said.

The association, he said, has reiterated its demand on the need to reduce imports of edible oils as well as revoking the ban on coconut oil exports to arrest the fall in prices of coconut oil.

Bharat N. Khona, former Board Member, COMA, said there has been a marginal increase despite there is no demand from upcountry buyers and corporates. Due to lack of demand, the market may slide down in the short term.

>sajeevkumar.v@thehindu.co.in

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