Kerala and Tamil Nadu markets are facing acute shortage of copra due to low arrivals from neighbouring Andhra Pradesh and Karnataka.
Prakash B. Rao, President, Cochin Oil Merchants Association (COMA), said that this has resulted in coconut oil prices firming up, touching a high of Rs 98 in Kerala (Rs 95) and Rs 92 in Tamil Nadu against Rs 89.75 last week. Some corporate buying and enquiries resulted in the market firming up further.
Lower arrivals also boosted copra prices to Rs 7,000 a quintal in Kerala (Rs 6,800) and Rs 6,800 (Rs 6,600) in Tamil Nadu.
Over and above, Rao said that traders have started stocking large quantities of unhusked raw coconuts for the impending Sabarimala pilgrimage season which starts from November 17, when the demand will peak.
This, he said, might lead to further increase in coconut oil prices as well as raw coconuts in the short-term as the pilgrimage season will last until the second week of January.
Palm oil prices also slightly moved up to Rs 60 (Rs 59/kg) due to rupee fluctuation, while palm kernel oil prices remained at the same level of Rs 72 quoted last week.
However, expressing concern on the unusual surge in coconut oil price, Bharat N. Khona, former Board Member, COMA, said that it would in no way help the traditional industry and trade in Kerala. Of late, coconut oil prices are rising artificially, following the resultant impact of market forces.
According to him, the price stability is an important factor. However, it should be realistic and remunerative for the sustained growth of coconut oil industry and trade.
Thalath Mahmood, Director, COMA, said that the market is witnessing a buying trend because of copra shortage as well as off season both in Tamil Nadu and Kerala markets. He hoped that the pilgrimage will revive the market for raw coconuts.