Trading has not resumed to the full extent in the coconut oil market in Kerala after Onam holidays.

Coconut oil opened at Rs 60/kg in Kerala, while it was Rs 58 in Tamil Nadu. Copra prices are ruling at Rs 4,250 a quintal in Kerala and Rs 3,900 in Tamil Nadu.

Palm oil prices were quoted at Rs 61/kg, while prices of palm kernel oil have gone up to Rs 58 , up Rs 4 from prices two weeks ago.

According to Prakash B. Rao, Vice-President, Coconut Oil Merchants Association (COMA), supply of copra and coconut oil continues to be ample in both States. On the other hand, demand remained sluggish but higher prices of competing oils such as palm oil and palm kernel oil is supporting the market, he said.

Referring to Onam sales, he said that the demand for coconut oil was low compared to last year. Lot of copra stocks had piled up with traders, particularly in Tamil Nadu. However, traders are pinning their hopes on the ensuing Diwali season, he said.

Thalath Mahamood, President, COMA, said that liberal import of palm oil and palm kernel oil in north Indian markets is depressing the coconut oil market. Higher availability and cheaper prices of edible oils drag the demand for coconut oil – especially for industrial purposes, he said.

Bharat N. Khona, former Board Member, COMA, said that though the market is ruling steady, sentiments are weak among corporate and upcountry buyers. Due to lack of demand, the market may slide down in the short term. However, the future of the market seems good with the revival of monsoon in North India, he said.

> sajeevkumar.v@thehindu.co.in

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