A bullish trend resulted in the spurting coconut oil prices in Kerala and Tamil Nadu this week. Prices are ruling at Rs 67/ kg in Kerala (Rs 61.50) and Rs 66 in Tamil Nadu (Rs 59.50) due to low arrivals of copra.
According to Prakash B.Rao, Vice-President, Cochin Oil Merchants Association (COMA), tight supply in copra arrivals and speculative buying by local traders had boosted the sentiments of coconut oil market this week.
The prices are likely to remain upfront in the coming days due to this bullish trend, he said.
Copra prices are ruling at Rs 4,800 a quintal in Kerala (Rs 4,200) and Rs 4,700 in Tamil Nadu (Rs 3,900).
He said that people have started stocking copra in bulk quantities in Kerala and Tamil Nadu on anticipation of a further rally. However, palm oil prices are quoted at last week level of Rs 54/kg and palm kernel at Rs 53.
Bharat N.Khona, former Board Member, COMA, attributed the good demand for edible copra, which is moving towards North India, as the main reason for the market to rise.
However, he said that North Indian buyers as well as corporates are not interested in venturing into the market at this high rate as the imported edible oils are still cheaper, he said.