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Coconut oil prices surged a record high of Rs 105 a kg in Kerala on tight supplies.
Prakash B. Rao, President, Cochin Oil Merchants Association (COMA), said that the market has been rising continuously for the last one week. Traders and manufacturers have started buying copra at Rs 72-76 a kg.
In Tamil Nadu, coconut oil quoted at Rs 99/kg and copra at Rs 73.
Rao said that prices of both coconut oil and copra were moving up for the last one week due to tight supply. Major corporates have increased their purchase of copra.
According to Rao, prices are likely to rule at this level in the short-term. The ensuing Sabarimala pilgrim season will led to a higher demand for raw coconut, leading to further rise in coconut oil prices.
Imported oils are also ruling high on weak rupee. Palm oil prices touched Rs 65 a kg against Rs 60 last week and palm kernel oil stood at Rs 78 (Rs 72).
Thalath Mahmood, Director of COMA, said that the supplies are tight and the offseason has resulted in low arrivals.
The surge in prices has dampened domestic consumption.
According to Bharat N. Khona, former Board Member, COMA, shortage of copra and tight supply may continue. At these levels, corporates and upcountry buyers are unlikely to venture into the market.
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