High corporate demand and low copra arrivals continued to lift coconut oil prices both in Kerala and Tamil Nadu to a record high this week. Prices are now ruling at ₹15,000 per quintal in Kerala while it stood at ₹14,700 in Tamil Nadu, an increase of ₹400 compared to last week.

Thalath Mahmood, Director, Cochin Oil Merchants Association (COMA), said that corporates are on a buying spree in anticipation of a copra shortage. This coupled with the prevailing high and dry weather in the production centres of Pollachi, Tirupur, Kangayem led to a shortfall of at least 40 per cent during the season.

COMA, he said, is not expecting any further change in this price trend this year and it is expected to go up for the entire season in 2014. Copra prices also moving northwards touching ₹10,500 per quintal in Kerala and ₹10,200 in Tamil Nadu.  

Edible oils like palm oil and palm kernel oil were quoting at ₹60 per kg and ₹98 per kg respectively. The price of palm kernel oil, which is a close substitute of coconut oil, has remained steady in the last three consecutive weeks.

Due to high prices, the trade alleged that adulteration of coconut oil is rampant even though the food safety authorities say they have set up a foolproof mechanism at Walayar border check post.

COMA demanded that the Government should insist palm kernel oil importers to reveal the name of companies to whom they are selling the product. This would curb adulteration of coconut oil with palm kernel to a certain extent, Mahmood said. 

Bharat Khona, former Board Member of COMA said that there was a subdued demand from upcountry buyers due to price rise. The loose oil market in Tamil Nadu stood at ₹2,160 per kg for 15 kg.

Related Topics