Slight increase in copra arrivals cooled down coconut oil prices in Tamil Nadu this week. The prices came down to Rs 89.75 a kg against Rs 92 quoted last week.
However, Kerala witnessed an increase of Re 1 to Rs 95 a kg due to tight copra supply and increase in domestic demand, Prakash B. Rao, President, Cochin Oil Merchants Association (COMA), said.
There was a slowdown in upcountry demand due to reduced intake by corporates. The market, he said, seems to be heading for a correction which is evident from the low consumption.
Copra prices also started declining at Rs 6,800 a quintal in Kerala (Rs 7,000) and Rs 6,600 in Tamil Nadu against Rs 6,800 quoted last week.
Palm oil prices moved up to Rs 59/kg against Rs 53 due to price increase in Malaysia, the major producing country. Palm kernel oil prices remained at the same level of Rs 72 quoted last week, he said.
T.K. Jose, Chairman, Coconut Development Board, told Business Line that there is a significant production fall in major coconut producing States in south India due to climatic changes, drought, delayed monsoon last year affecting output. In order to recoup or rejuvenate production to normal levels, he said it will take at least 6-9 months more.
During this period, the production and availability of copra is expected to be less. This is going to be a major contributing factor to price, he said.
The severe crop loss at Tumkur in Karnataka, where large number of desiccated coconut industries are functioning, is now heavily dependent on north Kerala markets which also resulted in low copra arrivals from these markets.
sajeevkumar.v@thehindu.co.in