The coconut oil market recovered from lower levels in Kerala and Tamil Nadu this week after witnessing a selling trend.
Prices in Kerala touched Rs 63 quoted last week after sliding to Rs 61 a kg in the last few days. In Tamil Nadu, it bounced back to Rs 60 after trading low at Rs 58.50. Prakash B. Rao, Vice-President, Cochin Oil Merchants Association (COMA), cited bottom level buying from traders coupled with slight demand for edible copra from North Indian markets as the reasons for the recovery.
Prices, he said, are expected to be more or less steady in the coming days due to expectations of better crops (raw nuts and conversion of copra).
Copra prices are ruling at Rs 4,400 a quintal in Kerala (Rs 4,500) and Rs 4,300 in Tamil Nadu (Rs 4,350).
Other edible oils such as palm oil and palm kernel oil remained at the same level quoted last week at Rs 52 and Rs 53/ kg respectively. Piling up of edible oil stocks with large scale importers was the reason for the prices remaining stagnant, he added.
Adulteration issue
On the reports of adulterated coconut oil from Tamil Nadu to Kerala, Rao said though COMA had taken up the issue with the authorities on several occasions all are in vain. However, the Association now urged to take up the matter more seriously to help the industry and farmers to get a better price.
Meanwhile, Kerafed has warned people against coconut oil adulterated with liquid paraffin and palm kernel oil being sold in the market by unscrupulous companies, which are taking advantage of the huge demand of coconut oil in the State.
The company, in a press statement issued here, said that several companies are using packages which are similar to the Kera brand produced by the State-owned cooperative in order to capture a large share of the market.