Prices of coconut oil could drop this week as sales are poor and buyers keep away on hopes the oil will turn cheaper soon. Falling copra prices are likely to aid the trend.
“Coconut oil price is increasing every week. During the weekend, it ruled at ₹1,640 for a 15-kg loose pack. This is ₹20 higher than last week. But demand and sales are poor, as only negligible quantity of coconut oil was sold by the crushing units. Buyers expect the price to fall sharply in a week,” said RM Palanisamy, a coconut oil dealer in Erode.
He said that the price of the palm oil and palm kernel also, but all edible oils, including palm oil and coconut oil, will decrease soon. Due to higher prices, coconut oil sales have declined in the international market. Coconut oil traders said that the present hike in coconut oil price is purely artificial as some persons have wantonly increased the price. Copra was sold at ₹7,525-7,885 a quintal for the first grade and ₹6,645-7,685 a quintal at the Avalpoondurai Regulated Market Committee.
Copra farmers said the current copra prices are low and decreasing. In the open market, copra was sold at ₹8,000 a quintal. About 60 tonnes of copra arrived for sale at the Avalpoondurai RMC and the entire quantity was sold.