With coconut production dropping, copra and coconut oil prices are surging on demand from crushers.
At the Avalpoondurai market here, copra prices increased by Rs 300 a quintal on Friday.
“Prices increased sharply despite heavy arrivals. This was mainly since coconut oil was sold at Rs 1,380 for 15 kg loose pack. Still, crushers are expecting prices to rise,” said R.M. Palanisamy, a trader in Erode.
He said that palmolein and palm kernel oil prices ruled unchanged at Rs 64 a k but traders are buying limited quantity of coconut oil.
Coconut oil crushers said that they have adequate stocks but the sales were low.
Production of coconut has started decreasing and so they are trying to stock copra. Farmers expect the prices to increase next week.
At the Avalpoondurai market on Friday, 1,000 quintals of copra arrived for sale.
Many oil crushers from Kerala and local oil crushers participated in the auction and purchased all the offerings, quoting a higher price. Even the price of second grade copra increased by Rs 400 a quintal.
At Avalpoonduraithe first grade copra was sold at Rs 6,315-6,655 a quintal, second grade at Rs 4,585-6,315; 1,000 quintals were sold.