Coconut oil prices hold steady in Kerala, TN markets

KOCHI, JAN 29: 

The arrival of copra from Sabarimala in large quantities might impact coconut oil prices both in the Tamil Nadu and Kerala markets.

Prakash B. Rao, Vice-President, Cochin Oil Merchants’ Association (COMA), said the auctioned copra from the hill shrine had started arriving in the terminal markets of the two States at a discounted price of Rs 500 per quintal than the normal copra prices. The market received 120 tonnes last week and this is likely to impact prices in the short term, he said.

Meanwhile, coconut oil prices both in Kerala and Tamil Nadu remained more or less steady at last week’s levels of Rs 71 per kg in Kerala and Rs 68.50 per kg in Tamil Nadu. Copra prices also remained at the same level of Rs 4,900 per quintal in Kerala and Rs 4,800 per quintal in Tamil Nadu, he said.

According to Rao, the lean season for coconut oil has started and will continue till February-end, affecting raw material availability. There is a remote possibility of a further rise in prices as sales in North India have dropped due to the continuing cold wave conditions. The weather is keeping buyers and corporates away from the market, he said.

Palm oil prices are ruling steady at Rs 53 per kg against Rs 52 quoted last week and palm kernel oil prices have gone up to Rs 55 from Rs 54.

Thalath Mahamood, former President, COMA, said coconut oil produced from inferior quality Sabarimala copra is being used by soap manufacturers due to the low prices. This auctioned copra may not be of uniform quality, as pilgrims fill the coconut with ghee before offering it to the deity. Since it has a smell of ghee, such copra cannot be used for producing good quality coconut oil, he said.

He said traders were now pinning their hopes on the announcement of an increase in the floor price of copra from Rs 5,200 per quintal. The industry is awaiting a favourable order in this regard soon, he said adding, this may push up coconut oil prices further.

The market is witnessing a steady trend, following the tight supply of copra in both the Kerala and Tamil Nadu markets, he added.

Bharat N. Khona, former Board Member, COMA, said the market was ruling steady in spite of higher copra prices and poor arrivals. This has forced corporates and upcountry buyers away from the market and looking for cheaper imported oils, he said.