Heavy rains in Tamil Nadu due to the onset of North East monsoon impacted coconut oil market affecting copra arrivals. This coupled with diminishing local demand affected the market both in Kerala and Tamil Nadu this week.
Though the market is ruling in a steady line, there was a considerable consumer shift from coconut oil to other edible oils especially sunflower oil due to its low prices. It is estimated that there was a 30-40 per cent drop in local consumption in Kerala, Thalath Mahmood, Director, Cochin Oil Merchants Association (COMA) said.
The market seems to be moving southwards with sliding prices at ₹14,800 per quintal in Kerala, a drop of ₹200 from last week. In Tamil Nadu, the rates stood at the last week level of ₹14,500 per quintal. Copra prices in Kerala also reported a drop of ₹200 touching ₹10,200 per quintal this week, while in Tamil Nadu, it stood at ₹98,000, the same level quoting last week, he said.
The week-long Diwali holidays also going to have an impact in the market, which will be resumed only after 10 days, he said.
Bharat Khona, former Board Member of COMA said that Diwali demand was not seen in the coconut oil market especially from upcountry buyers due to high prices. The demand seems to be waning and the prices will come down further by December.
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