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 firming up of coconut oil prices in these markets touching Rs 98 in Kerala (Rs 95) and Rs 92 in Tamil Nadu against Rs 89.75 quoted last week. A little bit of corporate buying and enquiries also started firming up the market further.

Low arrivals also boosted copra prices at Rs 7,000 per quintal in Kerala (Rs 6,800) and Rs 6,800 in Tamil Nadu against Rs 6,,600 quoted last week.

Over and above, he said traders have started stocking large quantities of raw coconuts in connection with the impending Sabarimala pilgrimage season which starts from November 17 where the requirement is high.

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 for two months ending the second week of January.

The palm oil prices also slightly moved up to Rs 60 against Rs 59 per kg due to rupee fluctuation while palm kernel oil prices remained at the same level of Rs 72 quoted last week.

Expressing concern on the unusual price surge in coconut oil in the recent period, Bharat N. Khona, former Board Member, COMA was of the view that it would no way help the traditional industry and trade in Kerala. Of late, the coconut oil prices are more artificial 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.

He pointed out that there were rate committees in Kerala functioning very effectively in an unbiased manner keeping the interest of all section of the industry, trade and farmers.

Contrary to this, what is witnessed now is a marked change in the style of functioning of these committees by safeguarding certain vested interest. It is high time that the representative bodies should come forward for the overall benefit of the industry and trade, he said.

Thalath Mahmood, Director, COMA said that the market is witnessing a buying trend due to low arrivals on account of shortage and off season both in Tamil Nadu and Kerala markets. The pilgrimage season is expected to revive the market especially for raw coconuts, he said.

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