Coconut oil market was firm in Tamil Nadu and Kerala this week due to rains in producing areas of both the States.

This has resulted in decrease in copra and coconut arrivals and led to increase in coconut oil prices, Prakash B. Rao, Vice-President, Cochin Oil Merchants Association (COMA), said.

Prices in Kerala are ruling at Rs 62/kg while it has been quoted at Rs 60 in Tamil Nadu.

The market was not active last week in both these markets due to Puja holidays.

However, Rao said that availability of coconut in Tamil Nadu may be hit due to the threat of a cyclonic storm. This, in turn, has affected market sentiments.

Participation of upcountry buyers was also limited at this price levels, he added.

Copra prices are ruling at Rs 4,300 a quintal in Kerala and Rs 4,200 in Tamil Nadu.

Palm oil prices are quoted at Rs 61 a kg, while palm kernel oil stood at Rs 54.

Thalath Mahamood, former President, COMA, said that though the market is ruling in a steady position, the cheaper availability of imported palm oil and palm kernel oil may affect a further rise in coconut oil prices. Traders are now pinning hopes for a further price recovery in the ensuing Diwali season like in the past.

Normally, North Indian traders prefer to start fresh trading on the auspicious day.

Bharat N. Khona, former Board Member, COMA, said that upcountry demand was low at this price level.

The local demand in Kerala also dropped drastically due to cheaper availability of other edible oils.

In spite of this price rise, he said corporates and upcountry buyers are adopting a wait-and-watch policy in the market.

sajeevkumar.v@thehindu.co.in

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